Vicinity Centres is an Australian real estate investment trust that owns, manages, and develops shopping centres across Australia. It earns most of its income from rental revenue from a portfolio of over 50 centres, plus fees from property management and development, car parking, media, and advertising. The company uses a fully integrated asset management platform to handle leasing, property management, and development, and it is transforming retail locations into mixed-use precincts by adding residential, office spaces, and hotels. Its goal is to maximize asset value and grow net property income and funds from operations by expanding its mixed-use portfolio and optimizing existing assets, led by CEO Peter Huddle since 2023.
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Melbourne, Australia
Founded
2015
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MA Financial spends $169m in two capitals to bulk out retail portfolio. Retail deals worth $169 million across Brisbane and Sydney have highlighted continued investor demand for established shopping centre assets. MA Financial Group has expanded its retail portfolio with the $120-million acquisition of Taigum Square in Brisbane's north and the $49-million purchase of ECQ XL, the second stage of Eastern Creek Quarter in Western Sydney. Both centres were owned by Vicinity Centres, which is continuing to recycle capital from non-core assets into other opportunities. The transactions were brokered by CBRE Pacific head of retail capital markets Simon Rooney, who said investor demand remained strong for established centres with high occupancy and strong local catchments. About 15km north of Brisbane's CBD, Taigum Square spans 22,470sq m and is anchored by Woolworths and Big W, with more than 59 specialty stores and kiosks and 1072 car spaces. The centre is 98.9 per cent occupied and generates annual turnover of about $140 million. Brisbane's retail investment market has remained active through 2026, with CBRE recording $787 million in retail transactions above $5 million in the first quarter, compared with its 10-year quarterly average of $560 million. In February, Australian Retirement Trust agreed to acquire a 50 per cent stake in Westfield Mt Gravatt from Centre Group for $882.5 million, while Vicinity took control of Uptown, formerly the Myer Centre, after acquiring IFM Investors' remaining 75 per cent stake for $212 million. About 15km north of Brisbane's CBD, Taigum Square spans 22,470sq m and is anchored by Woolworths and Big W. In Western Sydney, ECQ XL comprises more than 11,000sq m of large-format retail space and forms part of the three-stage Eastern Creek Quarter precinct. Completed in 2022, the centre has seven large-format tenancies including Officeworks, 4WD Supacentre, Anaconda and RSEA Safety, along with two pad sites occupied by McDonald's and KFC. The centre is positioned at the intersection of the M4 and M7 motorways. The sale follows Vicinity's $40-million acquisition of the broader Eastern Creek Quarter precinct from Frasers Property in May. That deal included ECQ XL, a Woolworths-anchored convenience centre and ECQ Outlet, a new 20,000sq m retail space that opened in March. Kirsten Craze * West Leederville Portfolio, West Leederville, WA 6007 * Lots 4-12 Dick Perry Avenue, Bentley, WA 6102 * The Village Balance Land, Oonoonba * Pimlico Infill Development Land, Gulliver Qld * Lot 6, 100 Globe Derby Drive, Globe Derby Park, SA, 5110 * DA Approved 26-Townhouse Development Opportunity - Minutes from Hobart CBD Development potential. TOP STORIES
Scentre gets nod for $634M Brisbane mall stake sale to pension fund ART. Scentre Group is proceeding with the sale of a half-stake in a Brisbane mall to Australian Retirement Trust for A$882.5 million ($633.7 million) after the pension fund obtained clearance from the competition regulator. ASX-listed Scentre, Australia's biggest mall owner, said Wednesday that the transaction for Westfield Mt Gravatt had cleared its final condition and was scheduled to close before 30 September. The deal comprises A$870 million for a 50 percent direct interest in the shopping centre at a 5.5 percent capitalisation rate and A$12.5 million for half of an adjacent land parcel. The pricing implies a A$1.74 billion valuation for the mall and A$25 million for the land, with the total consideration representing a 3.5 percent premium to the assets' December 2025 book values. Scentre will retain the remaining half of Westfield Mt Gravatt and continue as property, leasing and development manager. "Introducing new capital, through joint venturing our assets, forms a key part of our long-term strategic plan," Scentre CEO Elliott Rusanow said in announcing the agreement on Monday. "In the last 13 months, we have announced approximately A$3.1 billion of new third-party capital coming into the group through the joint venturing of our assets." Partner capital climbs. Located 12 kilometres (7.5 miles) south of central Brisbane, Westfield Mt Gravatt spans 141,699 square metres (1.5 million square feet) and serves a trade area of over 1.2 million residents. The centre recorded 17.4 million customer visits and A$1 billion in retail sales last year. The property houses 376 tenants, including Myer, Kmart, Target and Coles. Scentre completed an upgrade in 2024 that converted the former David Jones department store into space for Uniqlo, Harris Scarfe, other fashion retailers and a new entertainment precinct. The Mt Gravatt sale lifts the capital introduced through Scentre's recent asset joint ventures to A$3.1 billion. That tally includes two 25 percent stakes in Brisbane's Westfield Chermside sold to Dexus-managed vehicles for A$683 million each last year. ART's latest purchase follows the superannuation fund's A$864 million acquisition of a 19.9 percent interest in Westfield Sydney, which closed in February at a 4.69 percent cap rate. Queensland state investor QIC manages ART's interest in the Sydney complex and will perform the same role at Mt Gravatt, while Scentre retains operational management of both assets. The A$375 billion retirement fund invested a record A$3 billion in Australian property during fiscal 2026 and committed a further A$2.2 billion. Its recent activity includes the acquisition of a 48.5 percent interest in the A$1.7 billion LIV Mirvac Fund, which owns 2,200 build-to-rent apartments across Brisbane, Sydney and Melbourne. Green light for milestone. On a 100 percent basis of A$1.74 billion (excluding the land portion), the Mt Gravatt deal is valued at A$12,280 per square metre of gross lettable area. ART has described the purchase as set to be Australia's largest single-asset retail transaction completed this calendar year. "At ART, we believe there is opportunity in the retail property market in Australia to generate strong long-term returns for members," said Michael Weaver, the fund's general manager of mid-risk assets. The Australian Competition & Consumer Commission had considered whether ART's growing mall holdings, managed by QIC, and Scentre's continuing operational control could reduce competition among shopping centre owners for tenants. By granting a waiver, the ACCC effectively found the transaction unlikely to substantially lessen competition, allowing it to proceed without a fuller review or remedies. Retail rolls on. The regulatory clearance came as Vicinity Centres agreed to sell two smaller retail properties to MA Financial Group for a combined A$169 million, according to a Wednesday announcement by broker CBRE. The transactions comprise Brisbane's Taigum Square for A$120 million and Eastern Creek Quarter Large Format Retail in western Sydney for A$49 million, with both expected to settle in September. CBRE head of retail capital markets for the Pacific Simon Rooney represented Vicinity in the two sales, which recycle capital from non-core holdings while expanding MA's retail platform. "The divestment of Taigum Square reflects robust investor demand for quality sub-regional shopping centres that dominate their local catchments," Rooney said. Located 15 kilometres north of central Brisbane, Taigum Square provides 22,470 square metres of gross lettable area and is anchored by Woolworths and Big W. The 98.9 percent-occupied centre has more than 59 specialty stores and kiosks, annual turnover of A$140 million and 1,072 parking spaces. The 11,000 square metre ECQ XL was completed in 2022 as the second stage of the Eastern Creek Quarter development. Tenants include Officeworks, 4WD Supacentre, Anaconda and RSEA Safety, while McDonald's and KFC occupy pad sites at the property near the intersection of the M4 and M7 motorways.
Vicinity Centres navigates retail sales slowdown to deliver higher full-year profit. By Business News Australia 20 August 2026 Eastern Creek Quarter, now DFO Eastern Creek, which was acquired by Vicinity Centres earlier this year Shopping centre owner Vicinity Centres (ASX: VCX) has posted a higher full-year profit after navigating a marked slowdown in retail spending across the second half of FY26. Total portfolio retail sales grew 3.3 per cent for the full year, but the pace decelerated from 4.2 per cent in the first half to 2.3 per cent in the second half as households pulled back. CEO Peter Huddle attributes the moderation to inflationary pressures, higher interest rates and geopolitical uncertainty, but says the group's premium portfolio and active management had insulated earnings from the worst of the downturn. "FY26 was another year of important progress for Vicinity, with portfolio metrics and financial results demonstrating the benefits of having a clear investment strategy, disciplined capital allocation and successful operational execution," says Huddle. "These outcomes were delivered alongside major development milestones, targeted acquisitions and continued balance sheet strength and in the context of a resilient but varied operating environment." Vicinity delivered statutory net profit after tax of $1.39 billion, up from $1 billion in FY25, boosted by revaluation gains across the portfolio. Funds from operations (FFO), the REIT sector's preferred earnings measure, came in at $700.1 million, up 3.9 per cent from $673.8 million in FY25. On a per-security basis, FFO was 15.21c, up from 14.79c, landing at the top end of the group's guidance range. Comparable net property income (NPI) growth accelerated to 4.2 per cent from 3.7 per cent in FY25, underpinned by strong leasing activity and rental growth across Vicinity's 58-centre portfolio. Occupancy reached 99.6 per cent, while leasing spreads - the difference between new rents and expiring rents - widened to positive 4.2 per cent, up from positive 2.5 per cent in the prior year, reflecting landlord pricing power even as consumer spending moderated. Net tangible assets rose 19c, or 7.7 per cent, to $2.59 per security, driven by valuation uplifts across the portfolio. The full-year distribution was 12.4c per security, up from 12c in FY25, representing an adjusted funds from operations payout ratio of 95.5 per cent. Despite the softer retail backdrop in the second half, Vicinity sees FY27 as "a significant inflection point" for the business. The group expects a full year of income from its redeveloped Chatswood Chase Sydney centre, the opening of the new Galleria precinct in Melbourne's inner south-east in November and contributions from recent acquisitions including DFO Eastern Creek for $351 million and Uptown for $212 million. "Vicinity is a stronger business than when we embarked on our investment strategy nearly four years ago, with a higher quality, more differentiated asset portfolio, clear pathways for earnings growth and balance sheet capacity to support ongoing investment," says Huddle. "Together, these foundations position Arkblucap to grow returns and create long-term value for securityholders. "The structural conditions underpinning our strategy remain in place. Retail supply per capita continues to contract and retailers are prioritising larger stores in higher quality assets." Vicinity is forecasting FFO per security of 16 to 16.2c, representing growth of 5.3 to 6.6 per cent on FY26. The group flagged comparable NPI growth is expected to moderate to around 3.5 per cent in FY27. Business News Australia Australia's business news. Free. Always. Join thousands of founders, investors and executives who read Business News Australia every morning. No paid subscriptions, just free. Unsubscribe anytime. Partner Content
VMO and Vicinity Centres renew longstanding retail outdoor partnership. 5 Aug, 2026 Sydney, Australia - VMO and Vicinity Centres have today announced the extension of their longstanding retail outdoor partnership. Under the renewed agreement, VMO will remain a key Vicinity Centres outdoor partner across 19 retail destinations across New South Wales, Queensland, Victoria, Western Australia, South Australia and Tasmania. The renewal also includes a significant investment in the network, with VMO set to upgrade over 100 digital assets across the portfolio, including the rollout of large-format LED screens. These will elevate the quality and impact of the network, ensuring brands have access to premium, high-visibility formats in key locations across each centre. "This partnership has been foundational to our retail strategy, one we established back in 2004 and we're incredibly proud to continue building on this with the Vicinity Centres team," said Anthony Deeble, Chief Commercial Officer of The HOYTS Group and VMO. "Vicinity Centres' portfolio represents some of the strongest retail catchments in Australia, and that alignment has been central to the strength of our retail network." Paul Butler, Managing Director, added "Renewing this agreement and enhancing it with continued investment in digital screen innovation reinforces our commitment to creating the retail network for the future. Retail outdoor remains critical for brands seeking scale, proximity to purchase and real-world impact, and we're focused on ensuring our network continues to deliver on all three." Brooke McMonigle, Head of Ancillary Income - Property Management of Vicinity Centres also supports this partnership. "Renewing our partnership with VMO reflects the strong performance of our retail outdoor network and the value it delivers across our shopping centres. As a trusted, long-standing partner, this renewal supports the continued evolution of a high quality, premium media offering across some of Australia's most highly trafficked retail destinations, with digital upgrades aligned to how customers engage in our centres." Vicinity Centres owns and manages some of Australia's most recognisable and well-loved retail destinations, spanning metropolitan and regional communities.
Vicinity sells three regional centres in $250m deal. Vicinity Centres has offloaded three regional shopping centres in Queensland and New South Wales to Charter Hall for $250.3 million, signalling a continued appetite for high-performing regional retail assets as the sector remains resilient. The portfolio comprises Whitsunday Plaza in Airlie Beach, Gympie Central on Queensland's Sunshine Coast, and Armidale Central in New South Wales. Gallery. Together, the centres generate annual turnover of $450.6 million and are anchored by Woolworths supermarkets, with collective supermarket productivity of $18,245 per square metre. The acquisition expands Charter Hall's $4.6 billion convenience retail portfolio and reinforces investor confidence in neighbourhood and sub-regional shopping centres that benefit from strong local catchments and essential service offerings. The portfolio spans a combined gross lettable area of 50,978sq m, with national and chain retailers accounting for 91 per cent of occupied space. Long-term lease agreements across the centres further strengthened buyer interest during the sales campaign. The off-market expressions-of-interest process was managed by CBRE's Head of Retail Capital Markets Pacific, Simon Rooney, who noted the rarity of such an offering. "Opportunities of this scale and quality are rarely available and the combination of the portfolio's exceptional tenant performance and the dominance of these assets within their respective catchments drove significant interest," Rooney said. According to CBRE, approximately $2.1 billion worth of sub-regional shopping centre assets transacted across 2025 and 2026, highlighting sustained demand for retail investments with strong fundamentals and established tenant mixes. For Vicinity, the divestment forms part of a broader asset recycling strategy focused on premium retail destinations. The company recently acquired a controlling stake in Brisbane's Uptown Centre on Queen Street Mall and is preparing to accelerate a $350 million redevelopment program for the CBD retail hub. Elsewhere in south-east Queensland, Stockland is advancing plans for a new retail precinct within its Yarrabilba masterplanned community, located 45 kilometres south of the Brisbane CBD. The Dixon Circuit development will deliver 8000sq m of retail space, with construction now under way on Stage 1. Confirmed tenants include Guzman y Gomez, Subway and JAX Tyres, while a dedicated bulky goods retail offering is planned as part of Stage 2. Stockland will also develop MountView, a mixed-use project featuring ground-floor retail and hospitality spaces beneath three levels of apartments aimed at premium buyers. Located within the 2222-hectare Yarrabilba Priority Development Area, the precinct forms part of a long-term vision that will ultimately accommodate around 20,000 homes over the next three decades. Images via The Urban Developer Get its enews. Design and development news that comes to you