SCA Property Group confirmed that the valuations for its retail portfolio has increased by $125.6m to $3,263.8m as at December 2020.
The valuation increase on like-for-like assets from June 2020 is $86.2m (or an increase of 2.7%) due to a 11bps tightening of cap rates, from 6.51% at June 2020 to 6.40% and an increase in net income of $1.5m or +0.7% and a reduction in COVID-19 once off rent relief adjustments from $27.4m to $4.0m at
Acquisitions during the period have contributed $39.4m, being the Bakewell Shopping Centre and the adjacent service station in Darwin, NT at a weighted average cap rate of 6.92%.
23 assets from the like-for-like portfolio were valued externally and make up $23.8m of the total increase in valuation (increase of 2.4%). The remaining 62 centres were internally valued and make up $62.4m of the total increase in valuation (increase of 2.9%).
Across the like-for-like portfolio, neighbourhood centre valuations increased by $82.5m (+3.5%), while sub-regional centre valuations increased by $3.7m (+0.5%).
Average cap rates for neighbourhood centres tightened by 13bps to 6.26%, while average cap rates for subregional centres remained flat at 6.84%.
In addition to the 87 properties that have been valued, SCP has entered into agreements to acquire the following properties:
- Auburn Central for $129.5m, an implied fully let yield of 6.0%;
- Katoomba Marketplace for $55.1m, an implied fully let yield of 5.6%; and
- Greenbank adjacent vacant land for $10.0m.
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