ASX-listed shopping centre owner SCA Property Group has established a A$750 million joint venture with an affiliate of Singapore-based GIC to invest in established metropolitan convenience retail centres across Australia.
The new unlisted vehicle, to be known as the SCA Metro Convenience Shopping Centre Fund, will be seeded with seven assets from SCP’s existing portfolio totaling A$284.5m at a weighted average capitalisation rate of 4.84%.
Subject to FIRB approval, GIC will hold an 80% equity interest in the JV. SCP will hold the remaining 20% equity interest and will be the investment manager of the JV.
”The investment criteria of the JV ensures that there is limited conflict with SCP’s balance sheet activities, with the JV to have a first right over neighbourhood assets in the Sydney and Melbourne metropolitan areas until the target $750m of asset level has been achieved,” said the REIT in a statement.
SCA Property said the establishment of a long-term strategic partnership with GIC represents an exciting opportunity for SCP to pursue opportunities on an expanded basis in the convenience retail sector.