Perron Group take 50% of Westfield Burwood25 May 2019
Scentre has stepped up efforts to fortify its retail portfolio, selling down a half stake in Westfield Burwood to the Perron Group in $575m deal announced this week.
Westfield decided to off load the interest in the Centre as it offered little further development potential and additional land was unlikely to be acquired, yet it remained of sufficient quality for capital partners to consider.
The Perron Group, founded by late Perth billionaire Stan Perron, is paying a 4.1 per cent premium to SCentre's book value, reflecting a yield of circa 4.8%. Westfield Burwood is centrally located within Sydney’s Inner West, approximately 12 kilometres from the CBD.
According to Shopping Centre News, the centre caters to a trade area population in excess of 464,000 residents and is ranked 43rd in Australia with total retail sales of close to $500 million and customer visitation of more than 14 million per annum.
Scentre Group and Perron Group have other longstanding co-ownerships including Westfield Woden, Westfield Airport West and Westfield Geelong.
Proceeds from the deal will initially be used to repay debt, and Scentre’s chief executive Peter Allen said the returns would generate further capital for the retail landlord to pursue its strategic objectives including its $3 billion in redevelopment opportunities across its 41-asset portfolio.