The Lend Lease Sub-Regional Retail Fund has sold Armadale Shopping City in Western Australia to Nick DiMauro for approx $110m.
The Centre which is anchored by an Aldi, Coles, K Mart and Target has a GLA of 31,665sqm and generates in excess of $190M in annual sales. The Centre has a trade area of approx 135,480 as of June 2019, which is forecast to grow by 2.6%pa reaching 184,580, by 2031. The demographics are predominantly young families with the average age of the main trade area population is 34.5 years and the average household income is around $100,892.
The property was held by the Lendlease Sub-Regional Retail Fund which is a $600m open-ended unlisted wholesale fund, established in 2014 that invests in sub-regional shopping centre assets. The fund acquired the assets from the Lend Lease Real Estate Partners fund which attempted to sell the assets in 2014. The Centres in the fund Menai Marketplace, Settlement City in Port Macquarie, Armadale Shopping City, Southlands Boulevarde and Northgate Shopping Centre in Geraldton.
Lend Lease Sub-Regional Retail Fund fund manager Matt Bowyer told The Australian that the divestment of the asset was “consistent with the fund strategy to focus on strong performing subregional assets that provide a high degree of convenience within their surrounding community”.
However Lend Lease would dearly like to trade all the assets in the Fund and last year established a Singapore listed Commercial REIT which holds a Singapore Retail assets and 3 Milan Office buildings and could acquire the retail assets at the right price.
Lend Lease has also been selling assets out of its $5bn Australian Prime Property Fund Retail portfolio after it was hit by $2bn in redemption requests. Last year the Fund sold a half-stake in Westfield Marion in Adelaide to Singapore’s SPH REIT and is now looking to offload its half-stake in the $1.7bn Westfield Carindale.
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