SCA in $270m Perth shopping spree

Sydney-based SCA Property Group has purchased four Perth shopping centres for a combined $269.4 million as part of a larger deal with ASX-listed Vicinity Centres.

Under the $573 million deal, SCA will acquire 10 centres across the country from Vicinity.

In Western Australia, the property group has agreed to buy Warnbro Centre ($92.9 million), Currambine Central ($91 million), Stirling Central ($44 million) and Kalamunda Central ($41.5 million).

The WA acquisitions more than doubles SCA’s existing portfolio in the state, which currently comprises shopping centres in Treendale, Kwinana and Busselton.

SCA also acquired shopping facilities in Victoria, NSW and Queensland, and the company’s chief executive Anthony Mellowes said the deal supported its growth plans.

“This acquisition represents a material and important strategic acquisition for SCP and is consistent with our disciplined approach to growth,” he said.

“The portfolio is being acquired on attractive terms and is expected to provide management with the ability to add value over the short, medium and long term.”

Since its merger with Novion in 2015, Vicinity said it had sold 35 shopping centres for more than $2.5 billion.

The company said the transactions formed part of a strategy announced in June to sell $1 billion of sub regional and neighbourhood shopping centres, so it could focus on larger assets.

“These transactions are a significant achievement and advance our strategy to unlock major potential in the business,” Vicinity chief executive Grant Kelley said.

“It is an important step in delivering strong and sustainable growth through focusing our directly owned portfolio on approximately 50 market-leading destination assets, expanding our wholesale funds platform and realising mixed-use opportunities across the portfolio.”

Following the deal, the company will still own 12 shopping centres across WA, including Galleria, where it is evaluating a possible expansion, Mandurah Forum and Midland Gate.

Shares in Vicinity were off 0.77 per cent at $2.59 each at 1pm AEDT, while SCA shares last changed hands at $2.37 each.