Abacus Property Group
(ASX:ABP) and the Kirsh Group have agreed on a $174 million deal to acquire Birkenhead Point Shopping Centre and Marina, in New South Wales.
Kirsh Group is a substantial security holder of Abacus, and the property group says both companies will acquire Birkenhead Point as tenants in common equal shares.
Settlement is anticipated to occur in late 2010 with $45 million of the purchase price made available by the vendor, as interest-free vendor finance for a period of three years.
The Birkenhead Point Centre has recently undergone a $50 million refurbishment program.
Managing Director Dr Frank Wolf says the acquisition is perfect for Abacus and aligns with the company’s strategy of targeting larger scale assets that provide an attractive initial yield and embedded capital growth.
Abacus Property Group reported a loss of $102 million for the year ending 30 June 2009.
