Australian property asset manager, ISPT, is seeking to raise A$250m (€153m) to grow its presence in the convenience shopping centre market.
Separately, it has increased its investment in Fort Street Real Estate Capital (FSREC).
The equity will be used to fund acquisitions for its A$2.5bn ISPT Retail Australia Property Trust (IRAPT), which owns a portfolio of 49 sub-regional and neighbourhood centres, as well as grow its presence in the retail market.
ISPT, which manages A$21bn of assets, will increase its stake in FSREC, the owner of a A$700m portfolio of 12 neighbourhood centre and sub-regional assets.
In 2021 ISPT acquired a 75% stake in the Fort Street management platform and a 95% stake in the FSREC Property Fund - which have now been increased to 100% and 98% respectively. The remaining 2% in the FSREC Property Fund is held by retail investors.
ISPT group executive, head of funds management, Matthew Brown, said: “This transaction increases IRAPT’s exposure to high-quality, non-discretionary grocery-anchored retail assets located in dominant catchments across Australia’s major capital cities.”
“Our investment in Fort Street underpins further growth of the IRAPT portfolio and demonstrates our ability to execute our retail strategy at scale at the same time as we look to actively curate our portfolio as well as unlock development.”
This story has been updated to clarify that ISPT’s fundraising is for a broader goal and that the investment in FSREC is a separate action.
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