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

AVEO GROUP TO BUY BACK SHARES FOLLOWING MEDIA INVESTIGATION

FOLLOWING last night's Four Corners report which revealed accusations against Aveo Group (ASX: AOG) of financi...

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

CROWN EMPLOYEES CONVICTED, JASON O'CONNOR TO SPEND 10 MONTHS IN JAIL

CROWN Resorts (ASX: CWN) employees who were arrested in October last year on suspicion of gambling offences have b...

QUICK TURNAROUND FOR $20 MILLION OFFICE IN MELBOURNE OUTER-EAST

AN office building in Melbourne's outer eastern suburb of Mount Waverley has sold for $20.5 million just two year...

Related News

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

METCASH NET PROFIT FALLS 20 PER CENT, ANNOUNCES CEO WILL STEP DOWN IN 2018

FOOD and grocery giant Metcash has announced its full year net profit has fallen more than 20 per cent and its CEO Ia...

SHARE PRICE PLUNGE FOR RETIREMENT VILLAGE OPERATOR AHEAD OF FOUR CORNERS INVESTIGATION

A RETIREMENT village operator which has been accused of charging excessive fees through complex contracts has respond...

CHINESE TECH FIRM LOOKS TO AUSTRALIA FOR 'CUTTING EDGE' IDEAS

CHINESE ed-tech company Retech Technologies (ASX: RTE) has listed on the ASX after raising $17.9 million from its IPO...

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