ASX-listed Abacus Property Group has divested three properties for a total interest of $138.6 million as it confirms its future focus in retail is on inner suburban, super convenience retail shopping centres.
The Village Bacchus Marsh shopping centre has been sold to Melbourne investor Colin De Lutis for $61.65 million on a 7 per cent yield.
The single level, 16,000 square metre centre, which Abacus purchased in July 2013, boasts more than 60 tenants and a strong anchor tenancy profile including Coles, Aldi and Target Country.
The 4.39-hectare, central township site has four street frontages, six access points and 714 parking spaces and was sold with a potential net income (fully leased) of circa $4.5 million. Coles has a 15-year lease, while Aldi, Nova, and Elms all have ten-year terms, with options.
The property was sold in an expressions of interest campaign by CBRE’s Mark Wizel and Justin Dowers. Settlement is due by the end of July 2018.
Related reading: Abacus Buys Two Office Buildings for $142m
A significant property player in Melbourne with interests in apartments, offices, hotels, carparks, and industrial property, as well as several shopping centres, De Lutis has plans to add value via a remix of tenancies with a focus on food, entertainment and services.
“This is a significant asset with exceptional growth potential in one of Melbourne’s key growth corridors. It also offers substantial revenue upside through a tenancy remix which will reflect the market’s positive reaction to the potentially negative impact of online trading,” De Lutis said.
In its office portfolio, Abacus confirmed the exercise of the call option for the remaining 50 per cent of 201 Pacific Highway, St Leonards, highlighted for divestment in February 2018.
Abacus and its equal co-investment partner had agreed to divest their combined 100 per cent interest in 201 Pacific Highway for $171.6 million to proceed in two tranches of 50 per cent interests to be settled in December 2017 and by June 2018. Settlement is anticipated for May 2018.
The joint owners agreed to divest the asset following an off-market approach by an adjoining land owner.
In its industrial portfolio, following another off-market approach, Abacus confirmed the divestment of 169 Australis Drive, Derrimut, Victoria for $34 million. Settlement is due to take place in June 2018.
Abacus said the total proceeds of $138.6 million will be utilised to reduce debt in the short term.
The Bacchus Marsh divestment follows Abacus Property Group’s $93.5 million purchase of 452-484 Johnston Street, Abbotsford last month in an off-market deal brokered by CBRE.