Vicinity Centres has sold a 50 per cent stake in Broadmeadows Central shopping centre to Melbourne-based Nikos Property Group for $134.5 million.
The shopping centre is located 19 km north-west of Melbourne CBD and is anchored by Kmart and has three supermarkets – Aldi, Coles and Woolworths – along with Hoyts Cinemas and more than 115 specialty stores.
Vicinity CEO and MD, Peter Huddle, said the proceeds from the sale will be used to repay bank debt and strengthen the balance sheet.
“Divesting interests in selected assets where we can realise attractive pricing enables us to execute our long-term growth priorities and deliver security holder value whilst maintaining our flexible balance sheet and strong credit metrics.”
He added the business has an “active” investment program where it recycles and allocates capital to fund accretive retail and mixed-use developments.
Vicinity would continue to provide centre management services and assist in the leasing of the shopping centre as well as any development activities.
The off-market deal was negotiated by CBRE which will also sell the adjoining Homemakers Centre Broadmeadows for Vicinity Centres through an expression of interest campaign, launching shortly.
CBRE’s head of retail capital markets for Pacific, Simon Rooney, said the acquisition continues the “trend of private investment groups, syndicates and, to a lesser extent, institutional investors taking out passive stakes in retail assets alongside institutional managers”.
- Further reading: Vicinity Centres reports strong tenant demand
