Vicinity pays $400m for Sydney retail investment
Vicinity Centres has agreed to buy a recently completed discount outlet mall, supermarket and large format retail complex in west Sydney.
The Eastern Creek Quarter, on 15.4 hectares, will set it back $400 million.
Frasers Property Australia is the seller having co-developed the asset with Western Sydney Parklands.
At the busy corner of the Great Western Highway and M7, 41 kilometres from town, the asset is said to have a catchment about 1.2 million.
Vicinity adds second DFO to NSW
After settlement on June 30, Vicinity will rebrand a component of the Eastern Creek complex as a Direct Factory Outlet.
It will become the ninth DFO the asset manager and developer controls.
Only one is in Sydney, at Homebush.
“Eastern Creek Quarter has quickly grown into a premier mixed-retail destination and a genuine community asset, a testament to strong partnerships and considered development,” FPA chief executive officer, Cameron Leggatt, said (continues below).
“Vicinity Centres is a high-quality, Australian-based operator and we are confident in the future they will build at ECQ for the tenants and customers who have made it what it is today,” he added.
Eastern Creek Quarter
Developed in three stages from 2020, Eastern Creek Quarter contains a 20,000 square metre discount retail centre – marketed as outer western Sydney’s first – with 100 stores tenanted to amongst others, Adidas, Asics, Country Road and Tommy Hilfiger.
There is also a 10,000 square metre Woolworths anchored shopping centre.
An 11,000 sqm large format retail and showroom complex, delivered in 2022, forms part of the deal too.
“ECQ is an outstanding development by Frasers and a highly strategic move by VCX to acquire a modern hybrid outlet retail precinct,” CBRE’s Simon Rooney, who brokered the deal with JLL, said.
“The acquisition by VCX was an astute market foray in the face of significant market interest, presenting the rare opportunity to expand its highly successful DFO footprint and buoyed by the exceptional initial trading performance of ECQ’s brand new outlet centre,” he added.
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