Vicinity snaps up Perth suburban centres
Vicinity Centres has acquired two shopping malls in Perth from the Insurance Commission of Western Australia for $319 million.
The purchase of The Shops at Ellenbrook (pictured) and Livingston Marketplace are the first under the direction of Vicinity’s new chief executive officer, Angus McNaughton. Vicinity Centres was formed following the merger of Federation Centres and Novion Property Group earlier this year.
McNaughton says the company’s strategy is to own high quality retail assets that are “well positioned in strong catchments where we can add value through our intensive asset management and development capability.”
Both centres are located in trade areas characterised by strong population and retail expenditure growth over the medium to long term, and have high specialty sales productivity and low occupancy costs.
McNaughton says both assets also have development potential which will strengthen their positions over time.
The Shops at Ellenbrook has a gross lettable area of 32,400 sqm. The $220 million purchase price, on a cap rate of 5.75 per cent, includes $20 million for 6.5 hectares of adjoining land.
The centre is anchored by Woolworths and Coles supermarkets and a Big W and has 75 specialty stores.
Situated 30 km north-east of Perth’s CBD, Ellenbrook is one of Perth’s fastest growing regions. The suburb’s population is forecast to grow by 4.7 per cent and retail spending is expected to surge by 7.3 per cent over the next 10 years.
Livingston Marketplace, purchased for $83 million on a cap rate of six per cent, has a gross lettable area of 15,0 sqm.
Located in Canning Vale, 15 km from the Perth CBD, the centre sits in a catchment which is forecast to grow by 2.6 per cent in terms of population and 5.5 per cent in retail spending over the next decade.
Sitting on a site area of 8.2ha, Livingstone Marketplace is anchored by a Woolworths supermarket and Big W, and has 36 specialty stores.
ICWA chief executive Rod Whithear says the proceeds from the sale will be reallocated to other assets within its investment portfolio.
“The Insurance Commission continues to work through offers for the office buildings in its investment portfolio and expects to make an announcement in coming weeks,” Whithear says.
Settlement on both assets is expected to conclude by the end of the year.