SCA Property Group (SCP) has established a convenience retail joint venture with GIC.
The unlisted vehicle, SCA Metro Convenience Shopping Centre Fund, will be seeded with seven SCP assets worth $284.5 million:
The properties are trading at a weighted capitalisation of 4.84 per cent; the total value reflects a 9.3pc premium to the June 30, 2021 book value.
GIC will hold an 80pc interest in the partnership.
SCP will retain the balance and be investment manager.
Partnership to grow to $750m
As part of the agreement, GIC will be offered first right of refusal over SCP controlled neighbourhood assets in Sydney and Melbourne until a fund target of $750m is reached (story continues below).
“The establishment of a long-term strategic partnership with GIC represents an exciting opportunity to pursue opportunities on an expanded basis in the convenience retail sector,” the manager added.
“This initiative further confirms SCP’s leading position in the ownership and management of convenience retail shopping centres,” it said.
Proceeds will be redeployed over the next 12 months into higher yield assets.
SCP has spent more than $600m on retail product this year.
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