Westfield Trust and Perron Group announce joint ventrues for Bay City Plaza, Geelong and Airport West, Melbourne
30 June 2003
Westfield Trust today announced it had entered into a joint venture with the Perron Group involving two shopping centres in Victoria.
Under the joint venture, Westfield Trust has purchased a 50% interest in the Perron Group’s Bay City Plaza shopping centre, Geelong, while the Perron Group has purchased a 50% stake in Westfield Trust’s Airport West shopping centre in Melbourne’s north west.
The 50% interest in Bay City Plaza was acquired from the Perron Group for $72 million reflecting an initial yield of 7.5% before transaction costs. The Perron Group has retained a 50% interest in the centre.
Bay City Plaza is a two-level shopping centre located at the heart of Geelong’s CBD precinct. The 35,200 square metre centre contains Myer, Target, Coles and 74 specialty retailers. The centre has total annual turnover of more than $160 million with specialty store sales averaging above $8,200 per square metre.
“The acquisition of our interest in Bay City Plaza represents a further opportunity for the Trust to increase exposure to high-quality regional shopping centres with strong growth potential,” said Westfield Managing Director Steven Lowy.
“Geelong is the second-largest urban centre in Victoria and Bay City Plaza is the leading shopping centre in that city.”
Westfield Trust has sold a 50% interest in its Airport West centre to the Perron Group for $87.7 million. This represents a yield of 8.15% and a surplus over book value of $3.4 million.
“We are very pleased these transactions create a new joint-venture relationship for the Westfield Group with the Perron Group, one of the country’s leading private property investors,” Mr Lowy said.
These transactions add to the high quality and diversity of the Trust’s income streams, however they will not have a material impact on Westfield Trust’s balance sheet gearing or earnings per unit.
Westfield Holdings has been appointed by the joint venture partners to manage the two shopping centres.
Following these transactions and the completion of the takeover bid for the AMP Shopping Centre Trust, Westfield Trust will have interests in 48 shopping centres in Australia and New Zealand.