This article is from the Australian Property Journal archive
RETAIL property owner Region Group has divested a neighbourhood shopping centre in Victoria’s coastal town of Warrnambool for $18.5 million, a premium to the latest book value.
The sale of the East Warrnambool Shopping Centre reflects a 8.5% premium to the June 2024 book value.
This sale will complete the group’s capital recycling program, which has generated $196.8 million at an average passing yield of 5.3%.
Located at 1-9 Gateway Rd, Warrnambool, the East Warrnambool Shopping Centre is a neighbourhood centre anchored by Woolworths along with seven specialty stores. It comprises a GLA of 4,319 sqm and is 100% occupied with a weighted average lease expiry of 3.9%.
Meanwhile the group has revalued its portfolio, recording a $34.1 million increase, from $4.282 billion as at 30 June 2024 to $4.316 billion as at 31 December 2024. The ‘like-for-like’ increase was 0.9% or $39.9 million.
Across the portfolio, 20 properties (25.6% by book value) were valued externally resulting in a $2.1m (-0.2%) decrease in valuation. The remaining properties were internally valued and resulted in a $42.0m (1.3%) valuation increase.
The weighted average capitalisation rate (WACR) is 6.08%, an increase of 0.01% since 30 June 2024.
Proforma gearing post the property sales and valuations is 33.0%, which is within the target gearing range of 30% to 40%.
