Vicinity Centres acquires stake in Lakeside Jundaloop, doubles profit

Vicinity Centres has acquired a 50 per cent stake in the Lakeside Jundaloop shopping centre in Western Australia from Future Fund for $420 million, and will co-own it with Lendlease-managed Australian Prime Property Fund – Retail.

“With Lakeside Joondalup already achieving annual retail sales of almost $800 million, and with Vicinity’s scalable retailer partnerships, we are confident there is growth and value to be unlocked,” said Peter Huddle, Vicinity CEO and MD.

“Importantly, Vicinity has also secured the property and retail development management rights for Joondalup, which provides the opportunity to utilise our retail management platform to drive asset performance whilst earning additional fee income.”

Huddle noted that Joondalup is set to be Perth’s second CBD, with its growing population expected to fuel above-average retail sales growth over the next decade.

Lakeside Jundaloop has a gross lettable area of 99,832sqm, and major tenants include supermarkets Coles, Woolworths, and Aldi; entertainment sites Hoyts and Timezone; and department stores Myer, Big W, Kmart, and Target. Its tenancy profile is supported by 16 mini-majors and 267 specialties and kiosks.

Simon Rooney, CBRE’s head of retail capital markets, said the acquisition signifies the re-entry of REITs into Australia’s regional shopping investment market.

Vicinity’s net profit grows 101.5 per cent

Meanwhile, Vicinity Centres reported net profit of $547.1 million in the last fiscal year, up 101.5 per cent.

During the year, the company’s achievements included acquiring the remaining 49 per cent of Chatswood Chase and securing the development masterplan approvals for major mixed-use developments at Victoria Gardens Shopping Centre and Box Hill Central North.

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