Vicinity Centres has exchanged unconditional contracts to acquire GIC’s 49% interest of Chatswood Chase Sydney for $307 million, with the transaction expected to settle on 15 March 2024.
Chatswood Chase is a major regional shopping centre located just nine kilometres from the Sydney central business district and in one of Australia’s most affluent catchments, with average household income 32% above the Sydney average. The asset is also located within close proximity to extensive bus, rail, and metro transport.
Vicinity’s CEO and Managing Director, Peter Huddle said, “Premium retail assets such as Chatswood Chase are a key pillar of our strategy and are an important enabler of resilient income growth and sustained value accretion through cycles. While we retain the right to nominate another purchaser prior to settlement, we are nonetheless pleased to take full control and expedite our Board-approved redevelopment of the asset.
“Chatswood Chase is an iconic asset with strong growth potential. Our redevelopment plans represent one of the most exciting and transformational projects to be undertaken in Australian retail property today and for the foreseeable future and will reinforce this exceptional asset as northern Sydney’s premier retail destination,” said Huddle.
The first phase of the redevelopment of Chatswood Chase, currently in construction will see Chase Market deliver more than 40 new restaurants, cafés and fresh food experiences and will be located on the lower Ground Floor
-
- Chatswood Chase Dining Hall
-
- Once complete, Chase Market will be home to over 40 new restaurants, cafés and fresh food experiences
Vicinity also announced today that it has exchanged contracts with customary conditions to sell Roxburgh Village in Victoria to JY Group for $123 million, representing an 8.8% premium to June 2023 book value. The sale is expected to settle on 8 March 2024. Under the sale agreement with JY Group, Vicinity will continue to provide property management services at Roxburgh Village.
As announced to the market on 1 June 2023, Vicinity also sold a 50% interest in the shopping centre at Broadmeadows Central for $134.5 million, representing a 5.2% premium to December 2022 book value.
Since 30 June 2023, Vicinity has also contracted to sell more than $40 million of non-core land parcels and adjacent properties at meaningful premiums to June 2023 book values.
Huddle concluded, “These transactions demonstrate disciplined execution of our active investment program. We are recycling and allocating capital to fund value-accretive developments and acquisitions of premium assets aligned with our portfolio strategy while at the same time, preserving the strength of our balance sheet and credit metrics.”
