Galileo Shopping America Trust’s joint venture company with New Plan Excel in the United States has bought a power shopping centre in Atlanta for $US24.3 million ($A32.1 million).
The Conyers Plaza I and II is located in Conyers, Rockdale County (Atlanta).
Conyers Plaza I and II is currently 98.3% leased, including four tenants that are currently fitting out their space.
Once these tenants have commenced trading (expected second quarter 2007), the stabilised yield will be approximately 8.2%.
The centre comprises GLA of 171,478 sq ft and is anchored by Wal-Mart Supercenter, Home Depot and Office Depot.
Other tenants include PetSmart and Goody’s Family Clothing.
The centre is located in the east of metropolitan Atlanta and is within proximity to Interstate 20, which provides linkage to the Atlanta CBD.
The centre has access to a population within a five mile radius of approximately 70,000 people with estimated average household incomes of $US68,225 per annum.
The trust recently announced a net profit of $128.16 million AIFRS adjusted for the year ending June 30, 2006 – an increase of 148% over $51.51 million in 2005.
The trust’s distributable earnings was $86.5 million or 10.20 cents, in line with market guidance.
Following the transaction, GSA will hold an indirect interest in 133 power and community centres in the US through its joint venture with New Plan Excel. The trust’s consolidated total assets are valued more than $A1.2 billion.
By Adam Parsons
