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Vicinity Centres’ CEO Peter Huddle has confirmed the acquisition of the remaining 49% stake in Sydney’s Chatswood Chase shopping mall from Singapore’s GIC for $307 million. The settlement is expected by March 2024. This acquisition, announced today, follows Vicinity’s recent divestments, including the sale of Roxburgh Village, a shopping centre located north of Melbourne, to Hong Kong’s JY Group for $123 million. Earlier, Vicinity also sold a 50% stake in Melbourne’s Broadmeadows Central to Nikos Property Group for $134.5 million in a deal facilitated by CBRE, and contracted over $40 million worth of non-core land sales.
The company plans to fund the acquisition through existing and new debt facilities and selected asset sales. Huddle hinted at the potential introduction of an additional institutional investor for the redevelopment of Chatswood Chase.
On October 31, Vicinity Centres became the full owner of Chatswood Chase after acquiring a 49% stake. The company has confirmed a $620 million redevelopment from March 2024, with over 45% income already secured. The refurbishment plan includes adding more than 40 new outlets to the shopping mall.
Despite management’s optimistic projections for the revitalised mall in FY26/27, Morgan Stanley expressed reservations during their check on these assertions. The firm upheld its Equal-Weight rating for Vicinity in the Real Estate sector, expecting a 9% return if VCX meets the target price, but warned that negative figures could indicate a loss.
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