Scentre Group and Barrenjoey have acquired half of Westfield West Lakes in Adelaide for $174.75 million.
Simon Rooney, head of retail capital markets – Pacific at CBRE, negotiated the deal on behalf of the Dexus Wholesale Property Fund.
This marks Scentre Group’s second venture into funds management following its acquisition of a 50 per cent stake in Westfield Tea Tree for $308 million last June.
“Ahead of Scentre Group exercising its pre-emptive right, the Westfield West Lakes opportunity garnered strong domestic and offshore investor interest,” said Rooney.
“The West Lakes transaction demonstrates the resurging investor interest in larger regional shopping centres, given that these centres have already rebased their income back to sustainable levels and are now positioned for growth.”
Westfield West Lakes attracts 6.6 million customers annually and boasts of 71,051sqm gross lettable area. Its tenants include David Jones, Woolworths, Coles, Kmart, Target, Harris Scarfe and Reading Cinemas.
The shopping centre’s major tenants report a combined $216 million in sales per year and 7.6 years of weighted average lease expiry, by GLA.
Meanwhile, Scentre Group remains as co-owner and property manager of the other half of Westfield West Lakes.
