SCA Property Group sells four shopping centres into new $58m unlisted fund

SCA Property Group sells four shopping centres into new $58m unlisted fund

On the back of SCA Property Group's (ASX: SCP) successful unlisted retail fund strategy called SURF the company has launched the third iteration of SURF valued at $58 million.

SURF 3 is currently raising funds to help acquire a portfolio of shopping centres on the east coast to form the new unlisted retail fund.

SCA is looking for investors to raise $35 million to help acquire the $57.9 million portfolio of neighbourhood shopping centres in Moama and Swansea in New South Wales, Woodford in Queensland, and Warrnambool in Victoria.

The four properties are currently held by SCA, but will be sold into the new unlisted fund at an arm's length for the benefit of new investors into SURF 3.

SURF 3 fund manager Melissa Kingham says each of the assets are well positioned to deliver strong dividends for investors.

"All four assets are surrounded by populations that, demographically speaking, are pre-disposed to visit their local shops for groceries and other essentials," says Kingham.

The Moama Marketplace, Swansea Woolworths and Woodford Village properties are anchored by a Woolworths supermarket and Warrnambool by Target. Moama is also anchored by a Woolworths petrol outlet.

SCA says the fund income is primarily generated by the anchor tenants, with the specialty tenants being non-discretionary focused including medical centres, pharmacies and food-based tenancies.

Kingham says SCA has already seen significant registration from interested shareholders.

"Already we have over 50 per cent registered interest from SMSF trustees who are looking for long average lease expiries and stable distributions," says Kingham.

SCA will manage the assets on behalf of the fund and will co-invest a minimum of 20 per cent of the amount to be raised.

The SURF 1 and SURF 2 unlisted property funds have delivered unitholders annual returns more than 8 per cent and 7 per cent respectively since being launched in October 2015 and June 2017.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

The Star “cleansing” continues with more management resignations

The Star “cleansing” continues with more management resignations

Evidence given today at a review into casino and resort operator Th...

Drone tech company Aerologix flying high after closing $4.2 million raise

Drone tech company Aerologix flying high after closing $4.2 million raise

Sydney-based drone tech company Aerologix is taking its operations ...

Spilling into the market: Ulu Hye cracks deal with Woolworths

Spilling into the market: Ulu Hye cracks deal with Woolworths

Plant-based milk start-up Ulu Hye has announced it will be launchin...

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

Despite recent trading conditions proving disruptive for the reside...