WOOLWORTHS TO OFFLOAD $180M IN RETAIL ASSETS

Written on the 20 October 2015

WOOLWORTHS TO OFFLOAD $180M IN RETAIL ASSETS RETAIL giant Woolworths is placing a $180 million portfolio of neighbourhood shopping centres across Australia on the market as part of its ongoing capital management program.

The portfolio comprises a mix of recently completed and partially developed retail assets in Queensland, Western Australia, Victoria and the Northern Territory.

The CBRE Australian Retail Investments team, headed by Peter Rossi, has been appointed to market the properties which are likely to garner interest from syndicators and institutions.

"The opportunity to purchase assets with an extremely secure and lengthy Woolworths' lease term and covenant is expected to draw significant interest in the sale process, particularly in light of the current demand for retail investment opportunities," says Rossi.

"Woolworths' shopping centre development program has been extremely successful due to their astute site selection, pragmatic and practical design philosophy and the very high standards and finishes they have included in all of their new projects."

The properties are located at Cornubia in Queensland; Mandurah and Dalyellup in Western Australia; Bakewell in the North Territory; and Seville and Selandra Rise in Victoria.

Three of the centres were recently completed with the remaining three to be sold by way of a development management agreement. All of the assets are secured by 20-year lease backs to Woolworths.

Woolworths has divested more than $2.8 billion of property assets since mid-2010, with about $2 billion folded into a new entity, Shopping Centres Australasia Property Group, in 2012.

The retailer's hotel subsidiary ALH Group also sold 54 freehold pubs in September last year for more than $600 million.

Expressions of Interest for the sale of the neighbourhood centres close on November 26.

The sale campaign coincides with continued strong interest in small-scale shopping centres nationally, with CBRE data highlighting that $1.1 billion worth of neighbourhood centres changed hands in the first three quarters of 2015 up 24 per cent from a year earlier.

"The current market for retail investments is the strongest we have seen for over a decade," Rossi says.



Latest News

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

CSL'S PROFIT UPGRADE CAUSES SHARES TO SOAR

HEALTHCARE giant CSL Limited's (ASX: CSL) share price climbed 12.5 per cent after the company almost doubled i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter