Half share in Adelaide’s Westfield Tea Tree Plaza sold for $308m

Half of Adelaide’s Westfield Tea Tree Plaza and the adjoining Tea Tree Plus has been sold to Scentre Group and Barrenjoey Private Capital for $308 million.

Scentre Group has established a jointly managed fund with Barrenjoey to make the acquisition, which marks its first venture into funds management.

The deal represents South Australia’s largest regional shopping centre transaction since November 2019.

The announcement came weeks after Vicinity Centre agreed to acquire Future Fund’s 50 per cent interest in Lakeside Joondalup, Western Australia.

“The opportunity to acquire a 50 per cent stake in a dominant and strong performing regional shopping centre in Adelaide’s affluent north-eastern suburbs garnered both domestic and offshore investor interest,” said Simon Rooney, head of Pacific retail capital markets at CBRE.

“This window of opportunity is beginning to close, with more investors looking to come back into the retail sector as interest rate volatility stabilises given the compelling returns on offer.”

Westfield Tea Tree Plaza has a total gross lettable area of 101,052sqm and is home to Myer, Big W, Kmart, Target and Harris Scarfe. Other tenants include Coles, Woolworths and Aldi, nine mini-majors and about 201 specialty stores.

The shopping centre attracts an estimate of 10.8 million customers per year. It is currently undergoing an $40 million upgrade works, to be completed in the first half of this year.

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