This article is from the Australian Property Journal archive
SCENTRE Group and Barrenjoey have confirmed their $174.75 million purchase of a half stake in Adelaide’s Westfield West Lakes, soon after another city of churches acquisition.
As previously reported by Australian Property Journal, the share was acquired from the Dexus Wholesale Property Fund (DWPF). Scentre Group will remain as co-owner and property manager of the other 50% of the asset.
Scentre Group stepped into the transaction under a pre-emptive agreement, marking its second foray into funds management following the June buy of a 50% interest in Westfield Tea Tree Plaza for $308 million alongside Barrenjoey.
Westfield West Lakes is the dominant food, service, and convenience-based centre in Adelaide’s north. It has a gross lettable area of 71,051 sqm and is anchored by a recently refurbished David Jones, Woolworths and Coles supermarkets, Kmart, Target and Harris Scarfe discount department stores, and Reading Cinemas.
Major tenants report a combined $216 million in sales per annum and have a weighted average lease expiry of 7.6 years by gross lettable area. Major and national chain retailers represent 95% of total gross lettable area and 91% of total gross rental income.
The centre brings in 6.6 million customers each year and currently caters to a significant trade area population of over 209,930 residents, forecast to reach 232,070 residents by 2041.
Future mixed-use development potential is supported by an underutilised 20.4-hectare landmark site, strategically positioned to benefit from the adjoining WEST Development, a 36.4-hectare master-plan development that will deliver 1,300 dwellings and community facilities.
CBRE’s Simon Rooney managed the transaction.
“The West Lakes transaction demonstrates the resurging investor interest in larger regional shopping centres, given that these centres have already rebased their income back to sustainable levels and are now positioned for growth,” he said.
“Ahead of Scentre Group exercising its pre-emptive right, the Westfield West Lakes opportunity garnered strong domestic and offshore investor interest. This was underpinned by the opportunity to acquire a stake in a dominant, strong performing regional shopping centre in Adelaide’s affluent northern suburbs.”
More than $1 billion worth of regional retail assets have recently change hands, including 50% stakes in Westfield Tea Tree, Lakeside Joondalup and Claremont Quarter, and some $1.3 billion in further deals are currently in play.
Last week, unlisted property fund manager ISPT put up for sale a 50% interest in the $276 million Cranbourne Park Shopping Centre in Melbourne’s south-east corridor.
Earlier this month saw Queensland’s biggest retail transaction to date 2024, with the Dexus Wholesale Property Fund and Melbourne-based fund manager Fawkner trading the Willows Shopping Centre in Townsville in a $212 million deal.
