Dexus buys stake in Australia’s second biggest mall
Dexus has bought a quarter stake in Australia’s second biggest shopping centre, outlaying $683 million.
The off-market deal affecting Westfield Chermside, about 12 kilometres north of Brisbane, is with SCentre, which will retain the balance and remain property, leasing and development manager.
It prices the asset at $2.73 billion – book value, which assumed a five per cent capitalisation rate.
Dexus will hold it in the Wholesale Shopping Centre Fund.
Also today the asset manager announced it sold industrial assets in Sydney, for $121.5m, and Brisbane ($32m).
Westfield Chermside
Opened in 1957 as the Chermside Drive-In Shopping Centre, developed by Allan & Stark, later bought by Myer, Westfield Chermside contains 175,550 square metres.
Apple, Big W, Coles, David Jones, Kmart, Myer and Woolworths are amongst the anchors.
There is also an Event Cinemas and 476 specialty stores.
The 11.3 hectare block contains 700 car parks.
Sales last calendar year circled $1.35b from 17.6m visits.
“Sourcing new capital through joint ventures continues to form a key part of the group’s capital management strategy,” SCentre chief executive officer, Elliott Rusanow, said.
“Since the start of the COVID pandemic, the group has been successful in sourcing funding through innovative and various sources, without diluting securityholder equity,” he added.
“The proceeds from this transaction will provide the group with further capital to pursue our strategic objectives of creating long term value for securityholders,” according to the executive.
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