Deka Immobilien has purchased an outlet retail centre in Canberra for AUD135m (€97m).
Sam McVay, managing director of McVay Real Estate, who handled the sale, told IPE Real Estate that it is the first Australian retail investment by the German fund manager.
McVay said the Canberra Outlet Centre, located in Fyshwick on the outskirts of the central business district, is one of the largest factory outlets in Australia.
It has some 44.879sqm and its tenants include Nike and Lindt Chocolate.
McVay said the sale represents an initial yield of 6.3% and a fully-let yield of 6.7%.
He said the centre is poised to benefit from strong reversionary income with the continuing repositioning of the centre, which includes plans a supermarket.
Deka bought the property through Australian fund manager Armada Funds Management for its Open-Ended Real Estate Fund.
Chris Monaghan, managing director of Armada Funds Management, said that: “We believe we have acquired this at a stage where the centre is stable and well established but still with room for more tenancy reconfiguration and growth over the next three to five years.”
Balmain Corporation, the agent for the Mortgagee in Possession, a subsidiary of Goldman Sachs, had stabilised and repositioned the asset before the sale, after taking control of the centre in late 2013.