Federation Centres continues asset sales

Federation Centres continues asset salesFollowing the recent sale of its Lutwyche City retail centre in Brisbane for $65 million, Federation Centres has off-loaded another four retail centres for a total of $153.1 million.Federation Centres, which recently merged with Novion Property Group, says the four sales represent an overall premium to book value of 2.4 per cent.Charter Hall has purchased two of the properties, Goulburn Plaza and Katherine Oasis, for a total of $94.9 million. Charter Hall Retail REIT has completed a fully underwritten $ million institutional placement to partially fund the acquisition of two properties.”Goulburn Plaza and Katherine Oasis are the dominant offerings in their catchment and their acquisition will further improve the REIT’s strong non-discretionary retail portfolio,” said Scott Dundas, Charter Retail REIT fund manager. Goulburn Plaza in the Southern Tablelands of NSW has an area of 13,938 sqm and is anchored by Kmart and Coles. The Katherine Oasis convenience centre in the Northern Territory has an area of 7162 sqm, including a full line Woolworths supermarket. Sentinel Property Group is the purchaser of the Westside Plaza sub regional centre in Broken Hill in western NSW. The 17,498 sqm centre was sold for $33.7 million.The 12,731 sqm Mount Gambier Centre in South Australia was sold to a private investor for $24.5 million. “These sales demonstrate the progress our team is making with the ongoing portfolio enhancement program through a combination of refurbishment, redevelopment and selective capital transactions,” said Angus McNaughton, the recently appointed CEO of Federation Centres.