Vicinity sells Perth’s Flinders Square shopping centre
Listed shopping centre giant Vicinity Centres has sold Flinders Square in Western Australia for $39.5 million as it shifts focus to larger properties and chases mixed-use opportunities.
The sale to a private company was brokered by Ben Tana and James Wilson of Colliers International and showed a 21.5% premium to the December 2017 book value.
The fully occupied neighbourhood shopping centre, anchored by Coles, is near the Perth CBD and comprises the full-line supermarket over 3547sqm, a City Farmers and 18 specialty shops.
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The property spins off a fully leased net income of $2.43 million and could suit a range of mixed-use development opportunities.
Vicinity chief executive Grant Kelley says the transaction “reflects the high demand for quality neighbourhood and subregional shopping centres such as those comprising our divestment program of up to $1 billion announced last month”.
Vicinity said in June it would sell 15 smaller malls either in one line or divided among individual buyers. The sale portfolio is being handled by JLL’s Simon Rooney with Macquarie Capital advising.
The mall giant plans to pour the proceeds into redeveloping the best of its remaining portfolio.
Vicinity is focused on residential projects around and above its malls and this week appointed Truman Dare as general manager, mixed-use development.
This article originally appeared on www.theaustralian.com.au/property.
