Vicinity Centres has exchanged contracts to acquire Eastern Creek Quarter (ECQ) in Western Sydney from Frasers Property for $400 million, with settlement expected on June 30, 2026.
The move comes ahead of the opening of the Western Sydney Airport, which is set to reshape the landscape of outer Western Sydney once the metro connecting the airport to St Mary’s Train Station is opened in 2027.
Located in Western Sydney's industrial and residential growth corridor, ECQ is a hybrid retail asset comprising a recently opened outlet centre of approximately 20,000 square metres, an integrated traditional shopping centre of around 10,000 square metres, and a large format retail centre of approximately 11,000 square metres. The centre is accessible via two large motorways and is proximate to major bus services and Rooty Rill Train Station.
The acquisition increases Vicinity's exposure to metropolitan Sydney, including DFO Homebush and Nepean Village in Penrith. Vicinity told its shareholders on the ASX last week that an opportunity exists to leverage its retail partnerships, property management, leasing and development capability to drive performance at the asset.
The deal will be funded through existing debt facilities, with gearing expected to increase by approximately 200 basis points. Settlement is subject to obtaining consent from the landlord for the assignment of underlying long-term ground leases.
"For some time now, Vicinity has been a selective, timely and disciplined acquirer of strategically aligned retail assets,” CEO and managing director Peter Huddle said. “As a hybrid retail asset that is strategically located and boasts a new outlet centre with future development opportunity, acquiring ECQ makes sense for Vicinity.
"Furthermore, by intentionally maintaining a conservative but flexible capital structure, we have been able to once again capitalise on an attractive acquisition opportunity that will enhance earnings resilience and strengthen our future income and value growth profile."