Axiom to offload half of Adelaide shopping centre
Listed developer Axiom Properties is selling its half-stake in the Churchill Centre North shopping centre in Adelaide’s northern suburbs for $42.5 million but will keep some exposure to the property.
Fund manager Inheritance Capital Asset Management will buy Axiom’s 50% leasehold interest in the centre, including senior debt of about $25 million.
The shopping centre’s key tenants are Coles, Aldi and Costco supermarkets as well as Kmart and a range of specialty stores.
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Axiom will keep a cornerstone stake of about 35% in the purchasing trust and will be entitled to a share of net income and any future increases in the value of its holding.
The vendor will also stay on as development manager in the development of any more stages of the centre over the next five years, which would provide performance fees based on the success of the project. Future development could include an extension to house large-format stores.
Axiom will receive net proceeds of about $17.5 million but will subscribe to $7 million of units in the purchasing trust, leaving it with net cash of $10.5 million.
The deal will be settled when the state minister for transport consents to the assignment of ground leases over the government-owned land, which is expected to be by April 12.
Southern Cross Equity Group owns the other half of the shopping centre.
Axiom bought a site in Richmond in Sydney’s northwest last year where it plans to build a hotel to benefit from heavy government investment in the area.
The group is also involved in a joint venture project in Adelaide for a mixed-use development including a hotel, serviced apartments, retail, office space and apartments.
