Vicinity sells Corio Central below book value
Vicinity have sold Corio Central to IP Generation for $101.0m, reflecting a 3.8% discount to book value and a cap rate of approx 8%.
The 31,523sqm Centre sits on an 8.7ha site, 8km north of the Geelong CBD, at the intersection of Purnell Road and Bacchus Marsh Road. The Centre features a double supermarket offering of Woolworths and Coles, a Kmart DDS, 6 mini-majors, and 82 specialties & kiosks. Also included are 16 offices and 1 pad site.
The Centre was originally put to market in 2018 as Vicinity sought to free up cash to fund expansions to its major new centres in Melbourne, however the campaign was not successful in achieving the desired price of $130m (2018 book value). Vicinity re-valued the Centre in June 2019 and wrote down the value to $105m based reflecting a softer cap rate of 7.75%.
Expectations from the current sale campaign were as high as $115m, however the market failed again to meet expectations with the final price $14m lower at $101m.
The purchaser, IP Generation, is headed by Chris Lock, the former head of Impact Investment Group. IP Generation is a property-based syndication group which has completed more than $250 million of property transactions within the past 12 months.
CBRE managed the sale campaign.