Vicinity Centres has exchanged contracts to sell Flinders Square in Western Australia for $39.5 million, reflecting a 21.5% premium to the December 2017 book value.
Mr Grant Kelley, CEO and Managing Director, said: “This transaction reflects the high demand for quality Neighbourhood and Sub Regional shopping centres such as those comprising our divestment program of up to $1 billion announced last month.”
The fully occupied neighbourhood shopping centre, anchored by Coles, is near the Perth CBD and comprises the full-line supermarket, a City Farmers and 18 specialty shops.
The transaction is expected to settle by the end of the month.
Vicinity also announced that as at 30 June 2018, 37 of its 74 directly-owned retail properties (65.5% by value) have been independently valued and the remaining properties have been subject to internal valuations resulting in a net valuation gain for the overall portfolio of $147 million, a 0.9% increase for the six month period. Combined with valuation growth reported for the first half of FY18, total net valuation growth of $555 million, or 3.6%, has been achieved for Vicinity’s directly-owned portfolio for the 12 months to 30 June 2018. The June valuations are subject to final audit and will be confirmed in Vicinity’s FY18 annual results to be announced on 15 August 2018.