Singapore-based real estate investment trust SPH REIT Management has entered into an agreement with Lendlease to acquire a direct 50.0% interest in the Westfield Marion, a shopping centre in Adelaide, for A$670.0 million. The acquisition is expected to be completed by end 2019.
Westfield Marion is the largest and the only super regional shopping centre in Adelaide, South Australia, with approximately 1.5 million sq ft of Gross Lettable Area (“GLA”). The freehold property which sits on a land parcel of approximately 2.5 million sq ft, is strategically located approximately 10.0 kilometres south west of Adelaide’s Central Business District .
With its large offerings and well segmented precincts of entertainment, fresh food, and dining, Westfield Marion is able to attract a footfall of 13.5 million annual visitors.
Scentre Group is the current co-owner of Westfield Marion and will be SPH REIT’s joint venture partner post completion of the acquisition. Scentre Group is the Australian Retail REIT, owning and operating Westfield in Australia and New Zealand with interests in 41 Living Centres, encompassing approximately 11,500 outlets and total assets under management of A$54.6 billion.
“We are very pleased to welcome SPH REIT as our joint venture partner at Westfield Marion,” said Scentre Group Chief Executive Officer Peter Allen. “Westfield Marion is the market leading Living Centre in South Australia with long-term development potential. With the confirmation of SPH REIT as our JV partner, we look forward to progressing plans for the next stage of the centre’s development.”
This transaction and our co-ownership with Scentre Group marks another significant milestone in expanding our presence in a country and sector with growth prospects. We are pleased with this opportunity to partner Scentre Group, the premier developer and operator of Westfield Shopping Centres in Australia, as well as to strengthen our existing relationship with Moelis Australia,” said Susan Leng Mee Yin, Chief Executive Officer of SPH REIT Management Ltd., as manager of SPH REIT.
