SCA Property Group makes $145.7 million Tasmanian shopping centres portfolio purchase
SCA Property Group - the listed property offshoot of Woolworths - has entered into an agreement to buy a portfolio of seven neighbourhood shopping centres in Tasmania for $145.7 million.
In making the announcement, SCA Property Group (SCP) said that the vendor had agreed to buy two of its centres for $22.1 million, as well as to subscribe for a $10 million placement of SCP units, at an issue price of $1.61 per unit.
SCA also separately flagged that it would be disposing of five non-core assets for $53.6 million.
At $145.7 million, the acquisition price reflected a weighted average capitalisation rate of 8%.
"The acquisition will enhance SCP's portfolio quality and income growth profile, and improve the diversification of the portfolio," said the company.
The acquisition will be funded with proceeds from asset sale, a placement to the vendor and existing undrawn debt facilities.
Assisting in the sales process was Knight Frank Tasmanian managing director Ian Wells.