This article is from the Australian Property Journal archive
SINGAPORE's Sim Lian Group has bought five neighbourhood shopping centres from Woolworths for $133 million, in a sign that offshore buyers are broadening their investment mandate in Australia.
The portfolio includes two centres, Lake Munmorah (5,669 sqm) and Jordan Springs (6,248 sqm) in New South Wales, a further two – Lucas (5,511 sqm) and Tarneit Gardens (6,427 sqm) in Victoria.
Another centre is currently under construction, Rothwell (5,020 sqm) in Queensland, due to be completed in April this year.
The portfolio also includes land of approximately 4.8ha adjoining the Tarneit and Lake Munmorah shopping centres, providing future development opportunities.
The portfolio was acquired through an off-market transaction from Fabcot Private Limited, a wholly-owned subsidiary of Woolworths.
The centres are anchored by a Woolworths supermarket, as the major anchor tenant occupying approximately 71% of the portfolio’s total GLA (28,875 sqm). The leaseback arrangement averages a period of 28 years. Other retail leases include specialty tenancies offering non-discretionary shopping options such as food and beverages, pharmacies and news agencies.
Sim Lian Group’s executive director Kuik Sing Beng said the acquisition of the “investment-grade” centres represents a milestone for the company.
“It represents our entry into the Australian shopping centre market and we are confident that it will further enhance the quality, diversity and income profile of our investment portfolio,” Kuik said.
This is Sim Lian Group’s second Australian acquisition after it bought 50 Margaret St Sydney from a private investor for $65.3 million, a strategic freehold on the doorsteps of Barangaroo in Sydney in September last year.
Property Review
