SCA Property (SCP) to form $530m venture with GIC
07:26, 3 December 2021
SCA Property Group (SCP), a real estate investment trust firm, plans to establish a AUD750m ($530m) joint venture firm with Singapore’s GIC to invest in shopping centres across Australia.
GIC will own an 80% stake in the joint venture firm, SCA Metro Convenience Shopping Centre Fund, while SCA Property will hold the remaining 20% and become the investment manager of the venture.
“The establishment of a long-term strategic partnership with GIC represents an exciting opportunity for SCP to pursue opportunities on an expanded basis in the convenience retail sector,” SCA Property said in a statement.
Deal to conclude in January
The deal, which requires approval from the Foreign Investment Review Board, is expected to be completed at the end of January.
“The investment criteria of the JV ensures that there is limited conflict with SCP’s balance sheet activities, with the JV to have a first right over neighbourhood assets in the Sydney and Melbourne metropolitan areas until the target A$750m of asset level has been achieved,” SCA Property said.
SCA Property’s portfolios include 92 shopping centres and three realty funds in Australia. Shares in SCA Property ended flat at AUD2.76 on Friday.