SCA Raises $260 Million for Mall Acquisitions

SCA Property has raised $262.4 million from institutional shareholders which will go toward securing its position as Australia’s leading owner and manager of convenience-based shopping centres.

Listed convenience retail landlord SCA, led by chief executive Anthony Mellowes, announced it has successfully completed the underwritten institutional placement raising the $262.4 million sum by issuing about 113.1 million new fully paid units.

The final placement is priced at $2.32 per unit, representing a 2.1 per cent discount to SCP’s closing price on Tuesday last week.

Proceeds from the placement will go toward funding the recent 10 asset acquisition of listed- landlord Vicinity’s shopping centre portfolio for $573 million.

The purchase price reflects an initial yield of 7.47 per cent on a fully let basis, including the rental guarantee and 7.24 per cent excluding it.

The ten convenience-based shopping centres will see SCA Property Group become Australia’s leading owner and manager of convenience-based shopping centres.

SCA, Woolworths largest landlord, had also said it would sell down its shares in Charter Hall Retail REIT to help fund the deal.

The acquisition and funding arrangements are expected to be more than 5 per cent accretive to annualised pro-forma full year funds from operations per unit.

The new units will settle on Tuesday, 9 October, with allotment to occur Wednesday, 10 October.

The new units will rank equally with existing SCA units and have full entitlement to the distribution for the six months ending December this year.