SCentre usurps IP Generation for Adelaide mall stake
SCentre has teamed with Barrenjoey Capital Partners for a half stake in Adelaide’s Tea Tree Plaza and adjoining Tea Tree Plus.
The deal with Dexus managed AMP Capital is worth $308 million – a 12 per cent drop on the ($349.5m) December, 2023, book value which assumed a 7.31 per cent yield and 6.25pc capitalisation rate.
The interest will be held in a jointly managed fund.
The balance, owned by SCentre, also the manager, has been held since 1988.
CBRE’s Simon Rooney was the agent.
SCentre usurps
The deal usurps one reportedly negotiated with Chris Lock’s IP Generation in April, also worth c$308m.
As part of the ownership structure, SCentre held the first right to buy the stake it didn’t own or nominate a party to.
On 21.7 hectares, the mall, developed from 1970 with major redevelopments in 1991, 2004, 2018 and 2024, with 4650 car parks, services a catchment of c650,000 within a half hour drive, with an average annual household income of $99,300.
There is 99,176 square metres of lettable area (or 101,052 sqm, gross).
Major tenants occupy about 56 pc – Aldi, Big W, Coles, Kmart, Harris Scarfe, Hoyts, Myer, Target and Woolworths amongst them.
There are also nine mini-majors, over 200 specialty stores and 191 sqm of offices.
Annual visitors in 2023 was 10.8m – up on $10.4m in 2022 (story continues below).
Modbury is about 15 kilometres north east of the CBD.
SCentre also owns half of the city’s Westfield Marion – said to be the state’s biggest mall by area, with 137,105 sqm.
The manager passed up the chance to buy the balance in 2019 – after being offered by Lendlease’s Australian Prime Property Fund, it traded to MA Financial managed Paragon REIT for $670m.
That was a good call – the stake valued at $618.5m in December.
Barrenjoey, based at Sydney’s Quay Quarter Tower, part owned by a Dexus managed fund, is 36.4pc owned by Magellan Financial Group.
Barclays upped its control to half that in mid-2022.
Lose some, win some
Meanwhile IP Generation is readying to settle on the $315m purchase of Stockland Glendale, 15km west of Newcastle.
Vendor Stockland priced it at $320m last June.
With c54,800 sqm – buildings covering just 28pc of the 18.6ha block – it is anchored to Coles, Event Cinemas, Kmart, Target and Woolworths.
There are also 10 mini-majors, 66 specialties and 11 pad sites.
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