SCentre, Barrenjoey buy another Adelaide mall stake
SCentre and Barrenjoey Private Capital have teamed again for a stake in an Adelaide shopping centre.
The 50 per cent interest of Westfield West Lakes is setting the pair back $174.75 million – a circa eight per cent yield and 5.5pc drop on the ($185m) June 30, 2023, value.
Dexus was the seller on behalf of the Wholesale Property Fund.
CBRE’s Simon Rooney was the agent.
SCentre exercises pre-emptive right
SCentre holds the other half of Westfield West Lakes.
As part of its ownership structure, it had a pre-emptive right to buy the balance from Dexus, or find an investor which could.
SCentre and Barrenjoey have now tapped investors for $83m to help fund the stake, to be held by a new entity, the West Lakes Opportunity Fund.
Containing 71,517 square metres, the shopping centre is anchored to Coles, David Jones, Kmart, and Readings Cinemas, with c220 specialty stores and 3909 car parks.
Supporting a catchment of c550,000, it attracts c6.6 million customers annually (story continues below).
On 20.4 hectares, part of the asset holds longer term residential development upside.
West Lakes is about 14 kilometres north west of Adelaide’s CBD.
SCentre, Barrenjoey double down in Adelaide
The West Lakes deal comes two months since SCentre and Barrenjoey outlaid $308m for a 50pc interest in the Tea Tree Plaza and adjoining Tea Tree Plus, covering a total 21.7ha at Modbury, north east of town.
Dexus was that seller too, on behalf of AMP Capital.
SCentre was again the co-owner, exercising a pre-emptive right to buy it (usurping an offer by Chris Lock’s IP Generation).
That result reflected a 7.31pc yield and 12pc drop on the ($349m) December 30, 2023, book value.
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