AAP Finance

Vicinity seals largest Aussie retail deal for 2024

By AAP Newswire

Aug 20, 2024

The Queen Victoria Building, Sydney — Sydney's Queen Victoria Building is part of Vicinity's retail shopping centre stable. -AAP Image

Vicinity Centres has completed Australia's largest retail transaction of the year, buying a half-stake in the Lakeside Joondalup shopping centre north of Perth for $420 million.

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Chief executive Peter Huddle said there is massive potential for Lakeside Joondalup and is confident there is growth and value to be unlocked.

"Vicinity has secured the property and retail development management rights for Joondalup, which provides the opportunity to utilise our retail management platform to drive assets performance, whilst earning additional fee income," Mr Huddle said.

The exchange of contracts and settlement happened on Monday, with the transaction being funded by a mix of existing debt facilities and asset divestment proceeds.

It marks the second big shopping centre buy for Vicinity this year, after the company paid $307 million for a 49 per cent stake in the Chatswood Chase plaza, on Sydney's lower north shore.

Vicinity also announced on Tuesday it had beat its earnings guidance and lifted occupancy to its highest level since before the pandemic, at 99.3 per cent.

In Vicinity's CBD shopping centres - which include Sydney's Queen Victoria Building, Queens Plaza in Brisbane and Melbourne fashion hub Emporium - occupancy rates have also exceeded pre-COVID levels at 99.6 per cent, despite high rental leases and low consumer confidence.

By AAP Newswire

Australian Associated Press