This article is from the Australian Property Journal archive
AVENTUS finished a big 2017 by selling off two regional shopping centres, Shepparton Home in Victoria and Tweed Hub in New South Wales, in separate deals for a combined $60.1 million.
The group set a sector record in May with the $436 million acquisition of the Castle Hill and Marsden Park large format retail centres, however Aventus Retail Property Fund is looking at income growth for the financial year to be at the lower end of its guidance of between 2% and 4%.
The Shepparton Home large format retail centre has a gross lettable area of 13,661 sqm, anchored by Fantastic Furniture and has seven large format stores. The Tweed Hub convenience centre is on a 26,200 sqm site and has 15 large format, convenience and service-based tenants headlined by The Good Guys and First Choice Liquor.
They sold at a weighted yield of 7.42% and at 6.5% above book values at June 30.
“The sale of these two centres is in line with our strategy to divest smaller regional centres as opportunities arise in order to maintain balance sheet strength and lower AVN’s gearing,” Aventus Property Group’s chief executive officer, Darren Holland said.
“Following the acquisitions of Castle Hill and Marsden Park in May 2017 for $436 million, we advised that we would implement capital management initiatives to ensure we had flexibility to continue to enhance the value and quality of AVN’s portfolio.
“Following the settlement of these higher yielding centres, it is anticipated that the Fund’s FY18 funds from operations per unit will be at the lower end of previous guidance of two to four per cent growth over FY17 FFO growth.” Holland said.
JLL negotiated the off-market transactions.
Australian Property Journal
