sca-property-scp-asx-ticker-feature
Image: Canva.
  • 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.

You May Also Like

Home Consortium launches new fund: HMC Capital Partners Fund I

HMC Capital acquired interest in Sigma Healthcare as a seed asset for the new fund

Emu Park Village and Tantum Central shopping centres sold

Two regional Queensland shopping centres have sold for a total of $36 million, highlighting demand for such assets in the state

Certainty of earnings attracting capital flows into alternative REITs

Valuation increases have been seen across various sectors, especially those in the non-discretionary retail, child and health care sectors

Charter Hall valuations up over $100M each

CQE, CQR, and CLW valuations have seen a combined valuations increase of over $400M