Announced today, national shopping centre group Vicinity Centres (ASX: VCX) has sold its 50 per cent stake in Broadmeadows Central shopping centre to Melbourne-based Nikos Property Group for $134.5 million.
Situated 19km north-west of the Melbourne CBD, Broadmeadows Central is a 129,703sqm regional centre anchored by Kmart and a triple supermarket offering comprising Aldi, Coles (ASX: COL) and Woolworths (ASX: WOW), alongside Hoyts Cinemas and 115-plus speciality stores.
Today’s transaction comes more than a year since Nikos Property Group - led by petrol tycoon Nick Andrianakos - purchased a 50 per cent stake in the Colonnades Shopping Centre in Adelaide, which was bought from Vicinity for $138.2 million.
Under the latest agreement, Vicinity will continue to provide centre management and leasing services at Broadmeadows Central, as well as manage any future potential development activity.
“We are delighted to further strengthen our strategic partnership with Nikos by adding Broadmeadows Central to our existing joint interest in Colonnades Shopping Centre in South Australia,” Vicinity CEO and managing director Peter Huddle said.
“We are confident that our collective expertise in retail property investment will drive sustained returns for both parties.”
CBRE head of retail capital markets - Pacific, Simon Rooney negotiated the sale on behalf of Vicinity Centres.
“The Broadmeadows Central 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,” Rooney said.
“This allows institutional partners to reduce gearing and maximise the use of capital while maintaining management fee income.”
The Broadmeadows Central transaction was struck at a premium to Vicinity’s 2022 book value, with settlement expected on 30 June 2023.
On the heels of the sale, Vicinity is also moving to sell the adjoining Homemaker Centre Broadmeadows, via a CBRE-managed Expressions of Interest (EOI) campaign.
The campaign will provide an opportunity to acquire a 100 per cent interest in the 33,500sqm asset amid ongoing investor interest in large format retail investment opportunities.
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