MIRVAC PLANS BIG CHANGES FOR TOOMBUL AFTER $233M DEAL

Written on the 10 May 2016 by Nick Nichols

MIRVAC PLANS BIG CHANGES FOR TOOMBUL AFTER $233M DEAL

MIRVAC Group (ASX:MGR) has snared Brisbane's Toombul Shopping Centre for $233.3 million as part of a near $1 billion asset sell-off by its long-time owner Vicinity Centres (ASX:VCX).

The 44,000sqm centre has been a part of the Brisbane retail landscape for almost 50 years, undergoing significant upgrades in that time, and Mirvac wants to change it up again with plans for a new dining and entertainment precinct to meet a changing demographic in the city's inner north.

The sale of Toombul has been secured along with a $613.3 million disposal of three other retail centres by Vicinity to private equity group Blackstone.

The three centres comprise Clifford Gardens in Toowoomba, and Forest Hill Chase and Brimbank Shopping Centre in Victoria.

These deals come on the heels of Vicinity last week securing the sale of Indooroopilly Central in Brisbane to a private investor for $85 million.

Vicinity, formed last year through the $11 billion merger of Federation Centres and Novion Property, had previously indicated it was selling up to $1 billion in assets to focus on earnings-accretive investments in the property market.

"In a little over three months since we started marketing the first tranche of our divestment program, we have made substantial progress in reshaping the portfolio and have achieved this at favourable pricing with transactions agreed totalling $926.4 million," says Vicinity's CEO Angus McNaughton.

The combined sales by Vicinity have been struck at a 1 per cent premium to book value, with Vicinity saying the second tranche of sales it is planning will also be worth about $1 billion.

While Vicinity plans to focus on a number of new projects, including the development of a new DFO outlet with Perth Airport Pty Ltd, Mirvac says it will immediately take steps to improve the tenant mix at Toombul.

"Our focus for the centre in the short term will be to improve car park convenience and enhance the retail offer to better align with changing trade area demographic," says Mirvac's head of retail Susan MacDonald.

"Over the medium-to-long term, we will look to deliver a new entertainment offering and dining precinct, using our proven integrated retail development capability.

"This acquisition increases our exposure to the greater Brisbane market, and follows our recent successful expansions at both Kawana and Orion Springfield.

"We were extremely pleased to work alongside our existing capital partner, Blackstone Real Estate Asia, to secure this new opportunity."

Toombul, located on a 9.8ha site, has a moving annual turnover of $234.1 million with current occupancy sitting at 92.8 per cent.

The centre was originally acquired by Federation Centres, formerly Centro Property Group, in 2003.

The sale to Mirvac is expected to settle in the last quarter of FY16.


Author: Nick Nichols

Latest News

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter