- Acquisition is of convenience based retail centres
- Includes five properties across three states
- Will be debt funded using existing undrawn bank facilities
Shopping centre REIT SCA Property group (ASX: SCP) today announced the acquisition of five convenience based shopping centres for a combined purchase price of $180 million.
The purchase will be made from Centuria Capital Group’s (ASX: CNI) subsidiary Primewest, with the centres placed around Australia, and a weighted average fully let yield coming in at 6.0%.
Settlement is expected in early July 2022.
The portfolio of properties are spread across the country, with two each in South Australia and Queensland, along with one West Australian shopping centre.
| Asset | State | Purchase Price ($m) | Fully Let Yield (%) | Occupancy by GLA (%) | WALE by GLA (years) |
Anchor Tenants | Premium to book value | |
| Dernancourt Shopping Centre |
SA | 46.0 | 5.3% | 99% | 3.2 | Coles | 30.7% | |
| Fairview Green Shopping Centre |
SA | 39.5 | 6.8% | 99% | 7.7 | Romeo’s Foodland | 34.4% | |
| Brassall Shopping Centre |
QLD | 46.5 | 5.9% | 99% | 5.6 | Woolworths Aldi | 18.9% | |
| Port Village Shopping Centre |
QLD | 36.0 | 6.2% | 94% | 2.9 | Coles K-Hub | 16.1% | |
| Tyne Square Shopping Centre |
WA | 12.0 | 6.6% | 100% | 5.9 | Supa IGA | 16.3% | |
| Total | 180.0 | 6.0% | 98% | 4.9 | ||||
Following the acquisition, SCP’s portfolio of convenience-based shopping centres owned and managed will grow to over $4.6 billion. The company expects to add value to the acquisition portfolio through its active asset management and leasing capabilities.
SCP said the acquisitions will be debt funded utilising existing undrawn bank facilities.
SCP also said it intends to enter into an underwriting agreement with MA Moelis Australia Advisory to underwrite a DRP take-up rate of 50% of the total final June 2022 distribution amount (or approximately $44.7 million).
This means that if the take-up rate by unitholders under the DRP is less than 50%, Moelis will agree to subscribe for the shortfall. If the take-up rate by unitholders is greater than 50%, no underwriting will be required.
SCA Property is expecting that gearing as at 30 June 2022 will be approximately 28.5%. Following these acquisitions, and the DRP underwrite, the “pro-forma” gearing will increase to approximately 30.5%, which is at the lower end of the target 30-40% gearing range.
