Stake in landmark mall sells for discount
Vicinity Centres is on track to divesting some $250 million in assets this financial year, starting with a half-stake in a west Sydney mall.
Roselands – marketed as the southern hemisphere’s biggest shopping centre when it opened 60 years ago – is trading for $145 million, sources say, a touch over valuation ($142.3m).
HMC Capital, the buyer, is believed to be calling on investors.
If successful, the group will also collect fees and derive an income managing it.
The deal comes three years since Challenger’s CIP Asset Management sold the other half interest to JY Group for $167m – a 20pc premium to its then book value ($139m), assuming a 6.25 per cent capitalisation rate.
HMC buys, sells
Roselands holds significant mixed use development upside – on 14.3 hectares.
Anchored to Aldi, Coles, Kmart, Myer and Woolworths, it contains c63,300 square metres (story continues below).
It was Sydney’s first regional shopping centre, according to CBRE marketing agent, Simon Rooney.
Vicinity recently announced it planned to sell $250m in product – about half the value of what it shed last financial year.
HMC meanwhile is on a growth trajectory, behind two sector-specific REITs – with at least two more in the works.
Also connecting with private wholesale and institutional investors – many which are picking this time as a trough in the market – it is aiming to control $50 billion by 2030, including from a private credit arm.
The manager sells from its various trusts too – including last week, a Perth childcare centre, for $7.2m – a yield of just over six per cent.
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