Brookfield and co-investor Hawaiian Investments are selling a shopping centre in Perth to Dexus Wholesale Property Fund (DWPF) for AUD140m (€97.9m).

The deal marks the entry of the DWPF, which manages AUD7.1bn for domestic and international institutional investors, into Western Australia.

The Carillon City asset is in the central business district of Western Australia’s capital city.

Michael Sheffield, DWPF fund manager, told IPE Real Estate the centre required significant capital expenditure.

It will be repositioned after refurbishment to attract international retailers that do not yet have stores in Perth.

Sheffield said the Perth market had “some challenges” because of an economic slowdown in what is a mining-dependent state, and that, consequently, investors had been overlooking Perth for Sydney and Melbourne.

Brookfield has realised more than AUD1.6bn from the sale of its portfolio to fund its development pipeline, most notably the billion-dollar-plus Wynyard Place redevelopment in central Sydney.

Wynyard Place, one of Sydney’s largest urban-renewal projects, will offer upgraded amenities and more than 68,000sqm of new office space, along with 7,000sqm of high-end retail space.

Brookfield recently sold an office asset in Canberra for AUD80m to Australian pension fund Prime Super, as well as an office property in Brisbane, which it jointly owned with the DWPF.

Brookfield’s share was AUD66m.

Other disposals include 1 Shelley Street, an office tower in Sydney, to Charter Hall Group and Morgan Stanley’s Asia fund for AUD525m.

Last year, Brookfield sold its stake in Melbourne’s Southern Cross complex for AUD675m to Blackstone, and its share of the World Square Shopping Centre in Sydney’s central business district to ISPT for AUD280m.