This article is from the Australian Property Journal archive
Macquarie CountryWide Trust is weighing into Las Vegas as part of the its reposition strategy, which has also seen the trust buy a portfolio of shopping centers for $US51.5 million (approximately $AU70 million).
Yesterday, the trust bought a 75% interest in four recently developed centres in strongly performing markets, including two in Texas, one in South Carolina and another in Florida.
The Kleinwood Center and Mainstreet Center are the larger properties comprising 207,266 sq ft and 105,076 sq ft of space respectively. Kleingwood and Mainstreet each accommodate 32 and 21 stores and was valued at $US38.7 million and $US9.9 million respectively.
Meanwhile, the Murray Landing center in South Carolina comprises 64,359 sq ft and accommodates 16 stores and was valued at $US9.8 million. In addition, the Vineyard Shopping Center in Florida comprises 62,821 sq ft of space and accommodates 11 stores. The center was valued at $US10.2 million.
The acquisitions were sourced from the trust’s joint venture partner Regency Centers Corporation’s.
MCW’s chief executive Steven Sewell said the latest acquisitions highlight Macquarie CountryWide’s ability to reinvest investment profits into better performing assets.
“These are high quality assets located in strong markets with healthy growth forecasts.
The initial yield on the five properties is 6.7% while growth forecasts are supported by attractive demographics with above average grocer sales highlighting robust trading conditions. Further, the weighted average grocery anchor tenant lease expiry is 22.7 years,” he added.
The trust has also sourced a fifth property from a third party. The Centennial Shopping Center located in Las Vegas, Nevada – is currently under due diligence and is expected to be purchased by the joint venture in November 2006. The center has 105,415 sq ft of lettable space and accommodates 18 stores, and has been valued at $US23 million.
Sewell said the rapidly growing Las Vegas precinct is a new market for the trust where the population in the three-mile trade area is projected to increase by 65% between 2000 and 2009.
The five properties will add a total of 544,937 sq ft of space to MCW’s portfolio and the trust’s 75% share is valued at $US68.7 million.
In addition to the purchases, the trust has also provided an update on its disposal program and announced it has identified another four mature assets for sale.
Sewell said the trust had progressed its asset disposal program with the sale of three previously identified Texas assets – Hebron Parkway, Westheimer Marketplace and First Colony Marketplace – expected to close by the end of December.
The trust has also identified another four assets valued at $US75 million (100% interest) for sale, which are expected to close by the end of December 2006.
“We expect to realise strong investment profits on asset sales to continue our efforts to reposition the portfolio to higher returning opportunities and markets,” he concluded.
By Adam Parsons
