Vicinity set to offload more shopping centres

Vicinity Centres has sold Tweed Mall for almost $82 million.

Vicinity Centres has stepped up its asset sale program with the appointment of a slew of top agents to sell a non-core portfolio of subregional and neighbourhood centres worth about $250 million.

The shopping centre giant has appointed agents on individual assets in NSW, Victoria, Queensland, South Australia and Western Australia, in a sign the greatest value could come from selling the centres to individual investors.

Vicinity Centres, led by chief executive Angus McNaughton, is capitalising on the exceptionally sharp yields that shopping centres are achieving, and its portfolio strategy is likely to see sales at even tighter levels than a $200 million portfolio of Woolworths centres taken to market last year.

Offloaded: Vicinity Centres sells $841m shopping centre portfolio

Most of those were sold to individual buyers – the likely destination for the centres that Vicinity Centres is now preparing to offer.

Wodonga Plaza has been valued at $47 million.

Wodonga Plaza has been valued at $47 million.

Subregionals on the block include Tweed Mall, Wodonga Plaza and Maitland Hunter Mall, while neighbourhood centres include Hilton Plaza, Monier Village and Albany Brooks Garden.

Agencies involved include CBRE, Savills, Stonebridge, JLL and McVay Real Estate.

In NSW, Tweed Mall, the fully enclosed subregional centre with a Target, Woolworths and Coles supermarket, along with two mini majors, was held by Vicinity at about $79 million.

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The state’s Maitland Hunter Mall, a single level centre northwest of Newcastle, anchored by Kmart, is having its $20 million value lifted by adding two mini majors.

In Victoria, Wodonga Plaza, anchored by Coles, Woolworths and Target, was held at about $47 million.

Queensland’s Monier Village, an open-air neighbourhood shopping centre in Darra in Brisbane’s southwest, anchored by Woolworths and Aldi, was held at just over $20 million.

South Australia's Hilton Plaza is reportedly worth almost $18 million.

South Australia’s Hilton Plaza is reportedly worth almost $18 million.

In South Australia, Hilton Plaza, a neighbourhood shopping centre west of the Adelaide CBD, was worth about $17.8 million.

In the west, Albany Brooks Garden was held at about $25 million. Anchored by Woolworths, it has more than 10 specialty stores.

Vicinity Centres last month unveiled a record $841.4 million portfolio sale of four centres to a partnership between US private equity giant Blackstone and the listed Mirvac Group in a deal via JLL.

The listed retail property group reaped $613.3 million from Blackstone for the Clifford Gardens, Forest Hill Chase and Brimbank shopping centres, with a further $228.1 million from the sale of the Toombul centre to Mirvac Group.

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