SCA Property Acquisitions Take 2

18 June 2021

Fresh from entering a deal to secure Marketplace Raymond Terrace for $87.5m, SCA Property Group have returned to the Newcastle region to secure Marketown Newcastle in a separate deal worth $150.5m.

On the 9th June, SCP confirmed that it had entered into a Put & Call Option Deed to acquire Marketplace Raymond Terrace, a Woolworths and Big W anchored centre with 38 specialty tenants, on on an implied fully let yield of 5.96%.

On Tuesday this week, SCP also announced that it had concluded a deal with AMP Capital for the acquisition of Marketown East and West on an initial passing yield of 5.6%. The Marketown Centre consists of two assets, East and West. The East centre is anchored by Woolworths, Big W and Dan Murphy’s and has 28 specialty stores and the West centre is anchored by Coles and Officeworks and also has 28 specialty stores. Combined the properties generate approx $187m in sales turnover each year.

AMP Capital acquired the Centre on behalf of SunSuper in June 2017 for $163m. The current sale establishes a -$13m loss for SunSuper.

Sunsuper withdrew its mandate with AMP Capital in March this year having invested around $1.5 billion in commercial property with the group. Sunsuper announced that it was transferring its real estate mandate to Mirvac. In April AMP Capital sold (on behalf of Sunsuper) an interest in 68 Waterloo Rd for $106.5m.

We understand that the remaining assets include 330 Collin Street Melbourne, a 50% interest in Coronation Office Park (now called Milton Green), a 33% interest in South Eveleigh (with Mirvac holding a further 33%).

Sunsuper also hold interests in the AMP Capital Diversified Property Fund, the AMP Capital Shopping Centre Fund and the AMP Wholesale Office Fund.