SYDNEY, AUSTRALIA: SCA Property Group (ASX: SCP) has entered into agreements with Centuria Capital Group’s (ASX: CNI) subsidiary, Primewest, to acquire five convenience-based shopping centres across Australia for a combined purchase price of A$180 million representing a weighted average fully let yield of 6.0%.

The acquisitions are expected to settle in early July 2022. Post the acquisitions, SCP Property Group will own and manage more than $4.6 billion of convenience-based shopping centres reinforcing its position as the leading convenience-based retail specialist in Australia.

SCP expects to add value to the acquisition portfolio through its active asset management and leasing capabilities.

The acquisitions will be debt funded utilising existing undrawn bank facilities. SCP also intends to enter into an underwriting agreement with MA Moelis Australia Advisory Pty Ltd to underwrite a DRP take-up rate of 50% of the total final June 2022 distribution amount (or approximately $44.7 million).

This means that if the take-up rate by unitholders under the DRP is less than 50%, Moelis will agree to subscribe for the shortfall. If the take-up rate by unitholders is greater than 50%, no underwriting will be required.

“We are expecting that our gearing as at 30 June 2022 will be approximately 28.5%. Following these acquisitions, and the DRP underwrite, our “pro-forma” gearing will increase to approximately 30.5%, which is at the lower end of our target 30-40% gearing range,” a statement said.