SPH REIT buys 50% stake in South Australia's largest mall for $636.5m
Westfield Marion attracts 13.5 million annual visitors with a 99.3% occupancy.
SPH REIT’s wholly-owned subsidiary Marion Sub Trust has entered a sale of land contract with Lendlease Real Estate Investments to acquire a 50% stake in Westfield Marion Shopping Centre for $636.5m (A$670m), an announcement revealed. The acquisition is expected to be completed by end-2019.
Located in Adelaide, Westfield Marion is the largest and is reportedly the only super regional shopping centre in South Australia, with approximately 1.5 million sqft of Gross Lettable Area (GLA). The freehold property sits on a land parcel of approximately 2.5 million sqft, and is located 10 km southwest of Adelaide’s Central Business District.
The mall attracts 13.5 million annual visitors and has a 99.3% occupancy (by GLA) with a weighted average lease expiry (WALE) of 6.7 years by GLA and 4.2 years by income. Tenants include David Jones, Myer, Harris Scarfe, Target, Kmart, Big W, Bunnings Warehouse, Coles, Woolworths, Aldi and Events. It is also located beside Oaklands Train Station.
Post-acquisition, the mall’s current owner Scentre Group will become SPH REIT’s joint venture partner. Scentre Group is the largest retail REIT in Australia with a total assets under management amounting to $51.06b (A$54.6b), according to the press release.