SCA to sell three Woolworths-leased centres for retail fund
ASX-listed real estate investment trust SCA Property Group is offloading a portfolio of three Woolworths-leased retail properties with a price tag of about $45 million.
SCA is selling Fairfield Heights Woolworths, Griffith North Woolworths and Katoomba Dan Murphy’s for its unlisted retail property fund SURF 1.
The fully-leased properties can be sold in one line or individually, marketing agents JLL’s Sam Hatcher and Jacob Swan said.
SURF 1 commenced in 2015 to invest in newly constructed, freestanding properties in NSW leased to Woolworths.
It has five assets including the three being sold. The other two assets are Burwood Dan Murphy’s and Inverell Big W.
While the retail property sector continues to come under pressure – as asset values fall amid slow retail spending – certain assets such as neighbourhood centres or supermarket-anchored properties are still in demand and can prove to be very defensive assets in tough times, investors and agents say.
JLL says assets listed to ASX-listed retailers like Woolworths are still in hot demand, with their “bond-style” characteristics.
“With the cost and availability of debt improving, we are seeing exceptional returns on leveraged retail investments backed by strong lease covenants and long leases,” Mr Swan said.
Mr Hatcher is expecting strong interests from private investors.
SCA has two other unlisted SURF funds, SURF 2 and 3.
SURF 2 kicked off in 2017 and holds only two retail properties, Katoomba Marketplace anchored by a Woolworths supermarket, and a Big W discount department store and Mittagong Village anchored by a Dan Murphy’s bottle shop.
SURF 3 has four assets, Moama Marketplace, Swansea Woolworths, Warrnambool Target and Woodford Woolworths in Queensland.
