Perron Group to acquire half stake in three Centro centres for $690 million, setting post-GFC commercial retail record

The privately owned Perron Group has agreed to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.

The Perth-based property investment business owned and controlled by founder and chairman Stan Perron has entered into unconditional contracts to become joint owners of the Colonnades in South Australia, The Glen in Victoria and the Galleria in Western Australia in a deal brokered by Simon Rooney, Australian head of retail investments at Jones Lang Lasalle.

The Galleria (pictured above and below) is the biggest asset in the portfolio with 73,000 square metres of net lettable area and 201 speciality stores.

The Glen (pictured below) measures 59,000 square metres.

The Colonnades (pictured below) measures nearly 66,000 square metres.

JLL says this transaction is a post-GFC record for an agency-negotiated real estate transaction.

The previous record was the $738 million paid by LaSalle Investment Management in August 2007 to acquire a 50% stake in the Westfield Doncaster in Melbourne.

The Centro portfolio sale price on reflects a 3.7% premium to book value (pre-transaction costs) reflecting an increased level of demand for exposure to this sector.

The recent transactions of Westfield Doncaster (25% interest), Northland (50% interest) and Myer Centre Brisbane (50% interest) in late 2010 through to early 2012 were sold in line with book values, while in late 2009 and early 2010, Westfield Whitford City (50% interest) and Joondalup were sold at 5% and 2.9% discounts to book values, respectively.

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Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


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