Scentre Group has established a jointly managed fund with Australian investment bank Barrenjoey Private Capital to purchase a 50% stake in a regional shopping centre and the adjoining property in Adelaide for A$308m (€191m).

The partners have bought Westfield Tea Tree Plaza and Tea Tree Plus, a small shopping centre, under a pre-emptive agreement, marking their first foray into funds management.

The 101,052sqm Tea Tree Plaza deal represents South Australia’s largest regional shopping centre transaction since November 2019, when Singapore’s Paragon REIT and MA Financial, acquired a 50% stake in Westfield Marion for A$670m from the Lendlease-managed Australian Prime Property Fund Retail.

Simon Rooney, CBRE’s head of retail capital markets – Pacific, who negotiated the deal on behalf of a Dexus-managed fund, said the centre’s “genuine value-add potential” was the key drawcard of the asset. 

Tea Tree Plaza

Source: CBRE

Westfield Tea Tree Plaza

The acquisition comes just weeks after the announcement of Vicinity Centre’s agreement with the Future Fund to acquire its 50% interest in Lakeside Joondalup, Western Australia, with additional major retail transactions expected to be completed in the coming months.

To read the latest IPE Real Assets magazine click here.