Vicinity Centres divests three properties for $457 million
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The news: Shopping centre group Vicinity Centres has agreed to divest stakes in three non-strategic assets located in South Australia and New South Wales.
The numbers: Proceeds from the sale will total $457 million and represent a blended premium to book values of more than 5%, Vicinity said. As a result, it will exceed its full-year divestment target of $250 million.
The landlord, which counts Melbourne’s Chadstone and Sydney’s Queen Victoria Building among its properties, said proceeds from the asset sales will reduce its debt gearing by 230 basis points on a standalone basis.
The context: Vicinity said the deals include the divestment of a 50% interest in Elizabeth City Centre in South Australia, to Nikos Property Group, with whom the company already co-owns Broadmeadows Central in Victoria and Colonnades in South Australia.
It will also divest a 50% interest in Roselands, as well as a 50% interest in Carlingford Court, both in New South Wales.
The divestments are expected to settle on 30 June, 18 February and 1 April respectively. Vicinity said despite the higher than expected proceeds from asset sales announced to date, there would be no change to FY25 earnings guidance, due to the timing of transaction settlements.
The source: ASX announcement
