This article is from the Australian Property Journal archive
FAMILY-owned company Goodwin and Kenyon Group have sold the Marketplace Raymond Terrace in the Hunter Region of NSW for $87.5 million to acquisitive SCA Property Group (ASX: SCP), which bounced back from the pandemic with a $446.2 million valuation gain.
SCA is acquiring the centre on an implied fully let yield of 5.96%.
Raymond Terrace is the commercial centre of Port Stephens, 30 minutes from Newcastle and Maitland and only 15 minutes’ drive from Newcastle Airport.
The family-owned company bought Leffler Simes Architects designed centre in April 1999 from Woolworth’s property company Fabcot for $35 million. The 15,000 sqm property is anchored by a Woolworths supermarket and a Big W discount department store, with 38 specialty tenants.
Raymond Terrace joins SCA’s growing list of acquisitions and follows the $44 million purchase of Mount Isa Village from ISPT; the Cooloola Cove Shopping Centre in the Gympie region from Altor Capital; the triple supermarket-anchored Auburn Central in Sydney west for $129.5 million, on an implied fully let yield of 6.0%, as well as Katoomba Marketplace in the Blue Mountains for $55.1 million, representing an implied fully let yield of 5.6%, and Centre shopping centre in the Northern Territory for $33 million.
Meanwhile SCA revealed its portfolio performed strongly with neighbourhood centre valuations increased by $262.7 million (an increase of 10.1%), while sub-regional centre valuations increased by $60.4m (an increase of 7.5%). Average cap rates for neighbourhood centres tightened by 50bps to 5.75% and average cap rates for sub regional assets tightened 43bps to 6.41%.
The total value of SCP’s portfolio has increased by $446.2 million, from $3,403.3 as at December 2020 to $3,849.5 million as at June 2021. Acquisitions during the period contributed $123.1 million with a weighted average cap rate of 6.26%.
It recorded valuation net operating income increase of $1.5m (or 0.7%) from December 2020; and removal of COVID-related adjustments, in contrast to August last year when 600 tenants were on rent relief.
