Herbert Smith Freehills advises Vicinity Centres on sale of 10 shopping centres for A$631 million

Herbert Smith Freehills has advised Vicinity Centres on the sale of a portfolio of ten shopping centres to SCA Property Group (SCP) for A$573 million.

Settlement of nine of the shopping centres (Bentons Square and The Gateway in Victoria, Lavington Square and West End Plaza in New South Wales, North Shore Village and Oxenford Village in Queensland, Kalamunda Central, Stirlings Central and the Warnbro Centre in Western Australia) occurred on 10 October 2018. Settlement of Currambine Central in Western Australia occurred on 20 November 2018. 

The portfolio sale to SCP was in addition to the sale of Belmont Village to a private investor for A$58 million on 26 September 2018, bringing the aggregated sale price for the 11 assets to A$631 million. The transactions form part of Vicinity Centres’ A$1 billion non-core asset divestment program announced earlier this year.

The portfolio sale to SCP presented a unique challenge, as it was fast-tracked and completed over a three week period, to facilitate a successful capital raising by SCP. Completion of the portfolio sale in such a short timeframe highlights the depth and experience of the Herbert Smith Freehills team, which was led by partner David Sinn with support from senior associates Emily Peverill and Kimberley Lean, and solicitor Stephanie McSwiney.

Mr Sinn said the sales represent a significant milestone for Vicinity Centres, and would enable the company to pursue its strategy of unlocking potential in its business and repositioning its portfolio towards market-leading destinations.

“We were delighted to advise Vicinity Centres on its sale of these shopping centres,” Mr Sinn said. “It was an important transaction as part of Vicinity’s divestment program and demonstrates the continued demand for retail assets in the Australian market.”

This deal is another example of Herbert Smith Freehills’ market-leading work in the real estate sector. Other recent examples include advising:

• LaSalle Funds Management in 2017’s largest large-format retail centres deal, being the sale of two major Sydney large format retail centres, Home Hub Castle Hill and Home Hub Marsden Park, for a combined A$436 million to Aventus Retail Property.
• TrustCapital Advisers in its portfolio sale of five premium office assets in Sydney, Melbourne and Brisbane valued at a total of A$727 million to multiple purchasers.
• QIC on the sale of its 50 per cent share in the iconic MLC Centre, in Martin Place, Sydney, for A$722.5 million.