Vicinity Centres (ASX:VCX) is set to buy a stake in Harbour Town Premium Outlets in Queensland for $358 million.
After reaching a conditional agreement, the real estate investment company will acquire a 50 per cent interest from Australian Prime Property Fund Retail and Lewis Land Group will retain its 50 per cent stake.
In an ASX announcement today, Vicinity said that the Gold Coast Harbour Town will bolster Vicinity’s market share leadership in Australia’s growing outlet centre category. Harbour Town is a hybrid centre with premium outlet and convenience retail and a cinema and lifestyle proposition.
Vincity hopes to introduce new brands, enhance rental income and elevate the centre with more defined outlets. The acquisition will be funded by existing debt facilities and the settlement is expected to occur on 30 November this year.
“Today’s announcement reflects our strategy to invest in premium retail assets where we can buy well and add value. Harbour Town is located in an attractive trade area and the centre’s annual moving total is more than double the average moving total for Vicinity’s current outlet portfolio and is expected to grow at more than 3 per cent per annum to 20312, ” said CEO Grant Kelley.
Shares in Vicinity Centres (ASX:VCX) are trading flat at $1.68.