Scentre Group (ASX: SCG) today announced it acquired a 50% interest in Westfield Eastgardens in Sydney’s south-eastern suburbs for $720 million, representing a capitalisation rate of 4.25%.
Westfield Eastgardens is one of the top 30 shopping centres in Australia with total retail sales of more than $600 million. Westfield Eastgardens is currently 100% owned by the Terrace Tower Group and managed by Scentre Group.
Westfield Eastgardens has significant redevelopment potential for both retail expansion and mixed-use development given its location within an area that is undergoing substantial renewal.
Scentre Group CEO Peter Allen said: “In line with the Group’s strategy, this transaction is a rare opportunity to invest in one of the highest quality ‘living centres’ in Australia.
Westfield Eastgardens is regarded by planning authorities as one of Sydney’s ‘strategic centres’ with a trade area that has strong forecast population growth and investment in infrastructure including increased public transport.
The centre presents redevelopment opportunities including the introduction of local and international fashion retailers and expansion of the dining, entertainment and lifestyle offering. In addition, Westfield Eastgardens offers a unique opportunity to create value through mixed-use development including commercial, accommodation and education facilities.”