Vicinity sells Perth shopping centre for $107 million

(Source: Maddington Central/Facebook)

Vicinity Centres has agreed to sell the Maddington Central shopping centre in suburban Perth to property investor Realside for $107 million, the Australian Financial Review reported.

According to the report, Realside purchased the asset in an off-market trade at a premium to the $97 million book value.

It noted that the acquisition cost represents more than 40 per cent discount to the land and replacement value. It is also significantly lower than Vicinity’s $122 million peak valuation for the property.

Currently, the shopping centre is home to key tenants including Woolworths, Coles, and Kmart, with an average weighted lease expiry of longer than eight years and it has a $207 million in moving average turnover.

Fund-raising documents seen by investors show that Coles is in discussions to lease for another 10 years.

Earlier, Vicinity sold Dianella Plaza, also in suburban Perth, to Greenpool Capital for $76.3 million, at a 5.9 per cent premium to book value.

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