Vicinity Sells 25% interest in Mt Ommaney Centre to YFG
Vicinity has announced the sale of its 25% interest in Mount Ommaney Centre for $94.5m, reflecting a 3% premium to their book value and a cap rate of circa 6.05%.
The interest was acquired by YFG Shopopping Centres, a family business which controls 20 shopping centres in south-east Queensland, including Australia Fair on the Gold Coast and Brookside Shopping Centre in Brisbane’s north. TIAA Henderson continue to own the balance of the Centre.
The Centre has a development approval for a 11,481sqm expansion, including the introduction of a state-of-the-art cinema, casual dining precinct and entertainment destination together with an improved bus interchange and increased parking.
Mt Ommaney Centre is a single level Regional shopping centre located approximately 16 kilometres south-west of the Brisbane CBD. It is anchored by Big W, Kmart, Target, ALDI, Coles and Woolworths and includes more than 120 specialty stores with a total NLA of 56,389sqm.
Mount Ommaney was TIAA Henderson Real Estate’s first foray into retail property in Australia, acquiring their 75% interest alongside Vicinity from AMP Capital for $416.25M. The retail market has since suffered and along with it the valuation of the Centre. Vicinity last valued the Centre in June 2019 for $366m, based on a cap rate of 6.25%.
The transaction was managed by CBRE.