The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
20 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 500 ALREADY ATTENDING
20 DAYS UNTIL OUR FLAGSHIP CONFERENCE 500+ ALREADY ATTENDING
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
RetailLindsay SaundersSun 23 Jun 24

Stake in Adelaide Shopping Centre Fetches $380m

Retail heavyweight Scentre Group has partnered up with an investment bank to take a half-stake in a major shopping centre in Adelaide’s north-east for $380 million.

The deal to acquire 50 per cent of the Westfield Tea Tree Plaza also includes the Tea Tree Plus next door at Modbury, about 15km from the SA capital’s CBD.

Scentre and Barrenjoey Capital Partners have stepped into the Westfield Tea Tree transaction under a preemptive agreement, marking their first foray into funds management, according to CBRE, whose head of retail capital markets, Pacific, Simon Rooney, negotiated the deal on behalf of a Dexus-managed fund.

The acquisition comes just weeks after the announcement of Vicinity Centre’s agreement with the Future Fund to acquire its 50 per cent  interest in Lakeside Joondalup, Western Australia.

CBRE said more major retail transactions were expected in coming months.

The Tea Tree Plaza deal is South Australia’s largest regional shopping centre transaction since November, 2019 when Paragon REIT and MA Financial took a 50 per cent stake in Westfield Marion for $670 million from the Lendlease-managed Australian Prime Property Fund Retail.

“The opportunity to acquire a 50 per cent stake in a dominant and strong-performing regional shopping centre in Adelaide’s affluent north-eastern suburbs garnered both domestic and offshore investor interest,” Rooney said.

“This interest was underpinned by the centre’s genuine value-add potential, robust investment fundamentals, South Australia’s stamp duty exception and attractive retail yield spread relative to Sydney and Melbourne.

 “Active, well capitalised investors are opportunistically acquiring the best-quality fortress malls, which are historically rarely traded and offer exceptional investment fundamentals.”

Rooney said the window of opportunity to invest in such retail assets was beginning to close, with “more investors looking to come back into the sector as interest rate volatility stabilises given the compelling returns on offer”.

null
▲ Tea Tree Plaza is about 15km north-east of the Adelaide CBD and among the biggest retail centres in SA.

Tea Tree Plaza has a total gross lettable area of 101,052sq m and is anchored by Myer, Big W, Kmart, Target and Harris Scarfe alongside a triple supermarket offering in Coles, Woolworths and Aldi, nine mini-majors and about 201 specialty stores.

The centre also includes a popular dining and entertainment precinct, offering 10 restaurants and a Hoyts cinema complex, forming part of the most recent redevelopment of the centre completed in 2018.

An additional $40 million in upgrade works are to be completed this year.

The centre, on a 22.4ha site, is managed by Scentre Group and draws 10.8 million customers annually.

It’s current trade area population is more than 440,253 residents and that is forecast to reach 487,795 residents by 2041.

Scentre Group owns, and manages, a slew of Westfield centres in Australia and New Zealand.

RetailAdelaideDeal
AUTHOR
Lindsay Saunders
The Urban Developer - News Editor
More articles by this author
linkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
View All >
Singapore-based Roxy Pacific has sold Melbourne House for $23 million to a Sydney-based investor, less than what it paid for the Little Bourke Street asset in 2018.
Hotel

Sydney Investor Pays $40m for Melbourne CBD Asset

Marisa Wikramanayake
Broadbeach 5Point DA OBR108 hero
Development

New Tower Plans Pitched for Broadbeach Strip

Phil Bartsch
Villawood Club Redstone
Community

Villawood Breaks Ground on $18m Sunbury Redstone Club

Leon Della Bosca
The developer's 11th community clubhouse facility features pools, gym and childcare for 2500-lot estate...
LATEST
Singapore-based Roxy Pacific has sold Melbourne House for $23 million to a Sydney-based investor, less than what it paid for the Little Bourke Street asset in 2018.
Hotel

Sydney Investor Pays $40m for Melbourne CBD Asset

Marisa Wikramanayake
2 Min
Broadbeach 5Point DA OBR108 hero
Development

New Tower Plans Pitched for Broadbeach Strip

Phil Bartsch
2 Min
Villawood Club Redstone
Community

Villawood Breaks Ground on $18m Sunbury Redstone Club

Leon Della Bosca
4 Min
Rows of house roofs
Policy

RBA Surprises Market with Decision to Hold Rates

Leon Della Bosca
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/scentre-group-barrenjoey-capital-sa-tea-tree-plaza-adelaide