Vicinity buys back a half stake in Sydney’s Chatswood Chase mall at a 45 per cent discount, six years after trading it to Singapore’s GIC, a sign of how values have corrected.
Along with other commercial properties, malls and their valuations have been battered by the disruption to traditional shopping from e-commerce and by the sharp rise in interest rates.
Retail landlord Vicinity Centres has stepped up its asset sale program with the divestment of a half share of the just-opened Broadmeadows Central mall in Melbourne to Nikos Property Group for $134.5 million, with the proceeds going to repay debt.
The sale of Deepwater Plaza on the Central Coast reflects the strong appetite in the market for sub-regional malls, albeit at higher yields and lower prices.