This article is from the Australian Property Journal archive
AUSTRALIA’S second-largest shopping centre owner Vicinity Centres has bolstered its portfolio by acquiring the remaining 25% interest in DFO South Wharf and Homemaker Hub from Plenary Group for $141.25 million.
The 25% interest is being acquired on a passing yield of approximately 7%.
CIO Michael O’Brien said DFO South Wharf is a high quality retail asset.
“This transaction is in line with our strategy of increasing our investment in the very successful DFO portfolio.
“With strong sales growth, low occupancy costs of 10.2% and specialty store sales per sqm of approximately $9,200, we believe there is scope for further income and capital value growth,” he added.
“The asset will be further enhanced in the short term with the completion next month of the new multideck car park providing approximately 300 additional spaces. DFO South Wharf will also benefit from the development of a second hotel and the expansion of the Melbourne Convention and Exhibition Centre (MCEC) adjacent to DFO South Wharf which is underway,” he continued.
The DFO centre comprises 166 specialty tenancies, a homemaker centre including 21 tenancies and the South Wharf Promenade food and beverage precinct with 19 tenancies.
Australian Property Journal
