Vicinity Centres rises on buying remaining stake in Chatswood Chase Sydney

Vicinity Centres

31/10/2023 04:51

** Shares of property manager's Vicinity Centres  VCX.AX  
up 0.7% at A$1.7025, set for their best day since Oct 17, if
gains hold 
    ** Co exchanged unconditional contracts to acquire remaining
49% of Chatswood Chase Sydney, a regional shopping centre, for
A$307 mln ($194.95 mln)
    ** Brokerage Citi (A$2.00, neutral) views deal as a positive
recycling out of lower growth mature assets into higher growth
core retail developments 
    ** Brokerage expects initial dilution will impact the
short-term growth into FY25 and FY26 but position VCX for
stronger growth from the asset from October 2025 onwards
    ** Stock down 15.5% this year as of last close

($1 = 1.5748 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))