SCA Property Group’s most important tenant is Woolworths, so it will come as a big relief that the country’s largest retailer has shaken off the problems of the past three years and rediscovered growth in its huge supermarkets business.
Shopping Centres Australasia Property (SCP) has struggled to deliver since its inception late last year. Or rather, it has struggled to appear like it’s delivering. The portfolio of shopping centre assets from the spin-off of Woolworths’ ((WOW)) properties has definitely not set the world on fire. Nevertheless, if you take a rising broader equities market in the first half of the year the stock has outperformed and it is one of the better performing Australian real estate investment trusts (AREITs). Maybe grey is the new red.
Following the acquisition of a 4.9% stake in Charter Hall Retail ((CQR)). Credit Suisse has decided to investigate the potential merits of a full tie-up between the two entities. Bottom line: the combination between the two still looks expensive and CS finds there is "better value and thematic appeal" in Scentre Group ((SCG)), Westfield ((WFD)), Mirvac ((MGR)) and Goodman Group ((GMG)).
The company has entered into a conditional sale agreement for its NZ portfolio for NZ$267.4m. Credit Suisse believes the transaction is aligned with a strategy to exit lower-growth freestanding assets and focus on Australia.
Shopping Centres will acquire three Tasmanian assets from Federation Centres ((FDC)) and another asset in Qld. Part of the funding will come from a $50m capital raising at $2.02ps. The group has upgraded FY15 funds from operations guidance thanks to the lower cost of debt.