Vicinity Acquire a 50% Interest in Lakeside Joondalup

Vicinity has today announced the acquisition of a 50% interest in Lakeside Joondalup, Western Australia, in a move that bolsters its premium asset portfolio and demonstrates execution of its long-term business strategy.

Acquired for $420m, Vicinity’s stake in the dominant retail asset includes property management and development management providing the opportunity to utilise its sector-leading retail management platform to drive asset performance and customer experience.

Located 25km north of Perth CBD, Lakeside Joondalup boasts a H&M, Myer, Mecca Maxima and more than specialty 300 stores, and has long been the retail hub of the Joondalup community.

Vicinity’s CEO and Managing Director, Mr Peter Huddle said, “Lakeside Joondalup is a fortress-style retail asset located in one of Perth’s principal activity centres and has been on our target list for some time.

“Geographically, the suburb of Joondalup has been earmarked to become Perth’s second Central Business District and enjoys a captive and growing population, which is expected to drive above average retail sales growth over the next decade.

“The acquisition of Lakeside Joondalup, together with the recent divestment of three 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.”

Increasing the quality of its retail asset portfolio, by investing in premium assets, is a key pillar of Vicinity’s strategy with premium assets proving more resilient through cycles and, with the right retail mix and asset management, have the potential to deliver superior income growth.

Mr Huddle concluded, “With a clear strategy, strong balance sheet and disciplined approach to capital allocation, Vicinity is at the forefront of retail property investment and portfolio curation. In an environment of rapid population growth and limited supply of new retail, the investments we are making today are positioning Vicinity and its securityholders for long-term, sustained growth.”