Real estate investment firm Vicinity Centres has acquired the Western Sydney shopping centre, Eastern Creek Quarter (ECQ), for $400 million.
Bought from Frasers Property Group, the ECQ deal will add to Vicinity’s $25 billion portfolio of real estate assets. The sale is expected to be completed by June 30.
The ECQ site comprises more than 40,000sqm of gross lettable area across a shopping centre, large store and showroom precinct, and outlet retail space. Found 41km from Sydney’s CBD, the development of ECQ by Frasers Property Group was completed in three separate phases.
“Eastern Creek Quarter has quickly grown into a premier mixed-retail destination and a genuine community asset, a testament to strong partnerships and considered development,” said Cameron Leggatt, CEO of Frasers Property Australia.
“Vicinity Centres is a high-quality, Australian-based operator, and we are confident that in the future, they will build at ECQ for the tenants and customers who have made it what it is today.”
Vicinity’s CEO and MD, Peter Huddle, said the deal ”makes sense” for the company. ”For some time now, Vicinity has been a selective, timely and disciplined acquirer of strategically aligned retail assets. As a hybrid retail asset that is strategically located and boasts a new Outlet centre with future development opportunity, acquiring ECQ makes sense for Vicinity,” he added.
“The acquisition by Vicinity was an astute market foray, in the face of significant market interest, presenting the rare opportunity to expand its highly successful DFO [Direct Factory Outlet] footprint and buoyed by the exceptional initial trading performance of ECQ’s brand-new outlet centre,” CBRE’s Pacific head of retail capital markets, Simon Rooney, said.
“Outlet centres are traditionally tightly held assets and rarely traded; the most recent outlet transaction being the acquisition of a 50 per cent interest in Harbour Town Premium Outlets, which Vicinity Centres acquired in late 2021 for $358 million.”
Nick Willis, executive director from JLL, said “assets of scale and quality in core Metropolitan Sydney are really offered. “We experienced significant interest from offshore capital looking to re-enter the sector, notably major core funds.”
Sam Hatcher, head of retail at JLL, added: “This transaction underscores the continued growing weight of capital that is seeking exposure to high-quality retail assets”
Frasers Property Group said the sale follows its strategy of recycling capital, giving the group opportunities to pursue new purchasing opportunities.
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