Centuria, SCA trade five small malls

SCA Property has snapped up five small neighbourhood shopping centres from Centuria subsidiary Primewest.

The $180 million deal has been struck on a blended six per cent fully let yield.

It also reflects a 24.1pc premium to book value.

Centuria joint chief executive officer Jason Huljich said the disposals will deliver unitholders in the two trusts which held them a double digit internal rate of return; the manager will now charge a $5.7m performance fee.

The deal comes five months since SCA and GIC formed the SCA Metro Convenience Shopping Centre Fund, seeded with seven assets worth $284.m – but expected to hold product worth triple that (story continues below).

SCA boosts portfolio

The latest SCA assets includes four shopping centres held by the Primewest Retail Trust:

  • The Brassall Shopping Centre, near Ipswich (pictured, top), which is costing $46.5m reflecting a 5.3pc fully let yield. Anchored to Coles, it has a 4.9 year Weighted Average Lease Expiry. It is also near fully let (99pc);
  • Port Douglas’ Port Village ($36m, reflecting a 6.2pc return. The WALE is 2.9 years with Coles and Kmart the major occupiers;
  • Tyne Square Shopping Centre, a strata-titled Supa-IGA anchored complex with no development upside, in Perth’s Northbridge ($12m, a 6.6pc yield), and
  • Dernancourt Shopping Centre, north east of Adelaide – which is setting SCA back $36.5m, reflecting a 5.3pc return.

The fifth property, the Fairview Green Shopping Centre, about 10km south of Dernancourt, was held in a single asset fund, which was also closed ended. Centuria is selling for $39.5m – a 6.8pc return.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.