Vicinity Centres buys up $300m WA retail portfolio

The Insurance Commission of Western Australia has accepted an offer of just over $300 million from the listed Vicinity Centres for its retail property assets.

The purchase of the retail property portfolio is the first major play by Vicinity (VCX) with new chief executive Angus McNaughton at the helm.

The portfolio comprises two major retail suburban shopping centres that have been owned by the Insurance Commission since 2004 — The Shops At Ellenbrook and Livingston Marketplace in Canning Vale.

The chief executive of the Insurance Commission, Rod Whithear, says Vicinity’s offer was highly competitive and was ultimately selected on the basis that it best addressed the commission’s sale objectives.

Livingstone Marketplace is to be sold as part of a $300m retail portfolio.

“Vicinity has agreed to purchase the assets for slightly more than $300 million,” Whithear says.

He also announced that an Aldi supermarket will open next year in the bulky goods precinct at The Shops At Ellenbrook.

Vicinity, as the new owner, will manage the construction of the centre that will house Aldi.

Settlement is expected to conclude by the end of the year.

The sale proceeds will be reallocated to other assets within the Insurance Commission’s investment portfolio, held to offset insurance liabilities.

The Insurance Commission continues to work through offers for the $500m worth of office buildings in its investment portfolio and expects to make an announcement in the coming weeks.

This article originally appeared on www.theaustralian.com.au/property.