In Australia’s largest retail property transaction of 2024, Vicinity Centres has purchased a 50 per cent stake in Western Australia’s Lakeside Joondalup shopping centre for $420 million.
The deal, brokered by CBRE, sees Vicinity acquire the stake from the Future Fund, while Lendlease’s APPF Retail Fund retains the remaining 50 per cent interest.
As part of the acquisition, Vicinity Centres has also secured the property and retail development management rights for Lakeside Joondalup.
The transaction was funded through a combination of existing debt facilities and proceeds from asset divestments.
Lakeside Joondalup is a premium retail asset located 26 kilometres north of Perth’s CBD.
Key features include:
- 99,832 square metres of gross lettable area
- Anchored by major retailers including Myer, Kmart, Big W, Target, Coles, Woolworths, Aldi, and Hoyts Cinemas
- 16 mini-majors and 267 specialty stores and kiosks
- Direct railway connectivity and a bus interchange
- Annual retail sales of nearly $800 million
CBRE’s Head of Retail Capital Markets, Simon Rooney, highlighted the significance of this transaction, stating: “The acquisition marks the re-entry of REITs into Australia’s regional shopping centre investment market. It signals renewed interest from both REITs and unlisted wholesale funds in this market sector, which is expected to gather momentum throughout the second half of this year.”
This deal represents the first major regional shopping centre acquisition by a REIT since 2018.
Peter Huddle, CEO of Vicinity Centres, emphasised the strategic importance of this acquisition, stating: “The acquisition of Joondalup, together with the forthcoming redevelopment of Galleria and sale of four non-strategic assets in Western Australia, reflects our deliberate strategy to recycle and redeploy capital in order to right-size our investment and strengthen our asset portfolio in Western Australia.”
The Lakeside Joondalup deal is part of a broader trend of increased investment in Western Australian retail properties.
Since early 2023, the state has seen $1.4 billion in retail asset sales.
This growing interest is attributed to Western Australia’s strong economic growth, higher disposable incomes, and relatively affordable cost of living.
As the retail property market continues to evolve, this transaction underscores the enduring appeal of high-quality regional shopping centres to institutional investors.
