SCA Property Group has entered a put and call option deed for a Newcastle region shopping centre.
Exercisable after July 1, the asset, MarketPlace Raymond Terrace, is costing $87.5 million.
The deal, brokered by JLL’s Jacob Swan, Sam Hatcher and Nick Willis, is being struck on a fully let 5.96 per cent yield.
The vendor, Canberra-based Goodwin & Kenyon Group, acquired it from Woolworths’ development arm, Fabcot, in 1999 – when the centre was brand new.
It underwent a major refurbishment in 2010.
Yesterday, we reported Australian Unity was paying $55m for the Williamtown Aerospace Centre, abutting Newcastle Airport, c10 kilometres from Raymond Terrace.
Marketplace Raymond Terrace
With c15,000 square metres of lettable area, Raymond Terrace is anchored by Big W and Woolworths.
There are also 38 specialty stores and a service station.
In an announcement, SCA said that following revaluations of 90 other assets, its funds under management has increased $446.2m to $3.85 billion.
It assumes a capitalisation rate of 5.91pc, down 48 basis points since December 31, 2020 (story continues below).
The manager’s portfolio was worth $3.14b this time last year.
The MarketPlace deal comes four months since SCA Property Group outlaid $90.1m for four properties including Katoomba Marketplace ($55.1m), in the Blue Mountains, and Cooloola Cove, in Queensland’s Sunshine Coast ($18.6m).
Last November it paid Elanor Investors Group $129m for Auburn Central, in western Sydney.
Busy quarter for shopping centre deals
On Monday, we reported Chris Lock’s IP Generation paid Paul Lederer $300m for six New South Wales retail investments – a price which reflects a blended six pc yield.
Last month, a consortium including the Mustaca family and Pelligra Group outlaid $120m for Byron Bay’s Mercato on Byron and a neighbouring site, earmarked for a hotel.
Wingate and Azzura Investments were those vendors.
In April, Abacus Property Group spent $103.5m – book value – for the balance (60pc) of the The Oasis Centre, on the Gold Coast, which it didn’t control.
Also in Queensland this quarter, Blackstone divested Toowoomba Clifford Gardens for $145m – a drop on the $188.5m it paid Vicinity in 2016.
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