Australia’s leading retail property group Vicinity Centres (ASX: VCD) announced the divestment of two non-core assets for a total consideration of $195.5 million.
The divestments include:
- Mt Ommaney Centre, Queensland sold for $94.5 million (Vicinity’s 25% interest), a 3.3% premium to book value, and
- Corio Central, Victoria sold for $101.0 million, a 3.8% discount to book value.
The company expects this transaction to further strengthen its balance sheet, with around a 90 basis point reduction in gearing, with the proceeds assumed to repay debt in the short term.
Vicinity’s FY20 FFO (funds from operations) per security guidance has been reduced accordingly, from 17.8 to 18.0 cents to 17.6 to 17.8 cents.
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