Vicinity Centres asset divestment achievement

Vicinity Centres (ASX:VCX) has surpassed its FY25 asset divestment target of $250 million by achieving $457 million from selling three non-strategic assets. This move is part of Vicinity's strategy to enhance its retail asset portfolio and maintain financial strength.

Vicinity Centres divestment strategy and outlook

Vicinity Centres has exceeded its asset divestment target for FY25, securing $457 million from the sale of three non-strategic assets, including a 50% interest in Elizabeth City Centre, Roselands, and Carlingford Court. These divestments align with Vicinity's strategy to strengthen its retail asset portfolio and maintain robust financial metrics. The proceeds will reduce Vicinity's gearing by 230 basis points, though FY25 earnings guidance remains unchanged due to the timing of settlements. Vicinity continues to focus on strategic developments and acquisitions to enhance its position in the Australian retail property market.

Executive insights on divestment strategy

The divestment of Elizabeth City Centre strengthens our partnership with Nikos Property Group, showcasing our commitment to creating a more resilient retail asset portfolio. Despite the higher-than-expected proceeds, our FY25 earnings guidance remains unchanged due to the timing of settlements.