SCA Property Group has bought a portfolio of five convenience-based shopping centres across Adelaide, Perth and Queensland from Centuria for $180 million.
The sale included the Fairview Green Shopping Centre and Dernancourt Shopping Centre in Adelaide, and the Tyne Square Shopping Centre in Perth.
The deal also included the Brassall Shopping Centre in Ipswich in Queensland’s southeast and the Port Village Shopping Centre in Port Douglas in the state’s far north.
The sale price reflected a weighted average fully let yield of 6%.
SCA said it expected to add value to the portfolio through active asset management and leasing capabilities.
Following the deal, the company will own and manage more than $4.6 billion of convenience-based shopping centres across the country.
Centuria subsidiary Primewest sold the portfolio on behalf of two unlisted wholesale funds, with the sale price representing a 24.1% premium to book value.
Centuria Joint CEO Jason Huljich said both funds had been held for long-term periods and the sales provided compelling returns for their investors.
“These daily needs retail neighbourhood shopping centres have proved resilient throughout the past few years as local communities continued to rely on the supermarket anchored centres for their non-discretionary shopping,” Huljich said.
It’s the latest retail deal after Whistle Funds Management sold a Woolworths supermarket in the NSW regional town of Narrabri for $16.5 million earlier this week.
Woolworths Group sold a neighbourhood shopping centre in Newcastle in NSW to Centuria for $60.25 million earlier this month, while QIC sold the Castle Mall shopping centre in Sydney’s northwest to The Hills Shire Council for $105 million.
Last month, Nikos Property Group acquired a half-stake in the Colonnades shopping centre in Adelaide from Perron Group for $138.2 million, as HomeCo sold a large format retail centre in Knoxfield in Melbourne’s east to Troon Group for $45 million.