SYDNEY, AUSTRALIA: Vicinity Centres has exchanged contracts to sell its 50% interest in
Runaway Bay Centre in Queensland for $132 million, an 18% premium to 30 June 2021 book value.
Buyer is Perth-based Greenpool Capital in partnership with Qualitas. The Runaway Bay sale is expected to settle by 30 June 2022.
Vicinity also announced that its acquisition of a 50% interest in Harbour Town Premium Outlets Gold Coast (‘Harbour Town’) from Australian Prime Property Fund Retail (a wholesale fund managed by Lendlease) for $358 million is now unconditional after co-owner Lewis Land Group waived its pre-emptive right to purchase the interest.
The Harbour Town acquisition is expected to settle on 30 November 2021. Mr Grant Kelley, CEO and Managing Director, said: “Today, we have finalised agreements that strengthen our asset portfolio, having divested an asset at a significant premium to book value and invested in the fast-growing Outlet sector, where Vicinity is competitively advantaged and can extract additional value.
“We are also delighted to enter into a new strategic partnership with Lewis Land Group and confident that our collective expertise in retail property investment and management will drive sustainable, long-term returns for both parties.”
In relation to the sale of Runaway Bay, Mr Kelley said, “While Runaway Bay has been a solid asset within our portfolio, this transaction reflects our willingness to recycle our capital into assets with better long-term growth prospects, in this case, in the same attractive catchment.”
The combined Harbour Town and Runaway Bay transactions are expected to deliver Funds From Operations accretion of 0.14 cents per security (on a full year basis) and increase gearing by 144 bps.