Australian Retirement Trust (ART) is acquiring a 19.9% interest in retail centre Westfield Sydney for A$864m (€489m) in the largest single-asset CBD retail transaction in Australia.
ART is buying the stake from ASX-listed Scentre Group. Upon completion of the transaction, QIC will manage ART’s investment, while Scentre will continue to handle asset management.
Michael Weaver, ART’s general manager mid-risk assets and UK, said: ”Westfield Sydney was one of Australia’s most well-known retail assets with strong long-term fundamentals. It is among Australia’s premier retail destinations that has consistently demonstrated strong performance and resilience through economic cycles.
“We look forward to developing our partnership with Scentre Group, and leveraging QIC’s investment expertise to manage this premium retail asset for ART.”
Deborah Coakley, QIC Real Estate MD, said the transaction offered ART exposure to a prime asset underpinned by strong trade performance, exceptional foot traffic and enduring tenant demand.
Coakley added: “As investment manager, QIC will leverage its retail expertise to preserve and enhance these fundamentals, with this transaction the first in a potential pipeline of opportunities for QIC and ART to work together on.”
Elliott Rusanow, Scentre Group CEO, said this transaction follows the recent joint venture of 50% of Westfield Chermside in Brisbane with two Dexus funds for A$1.3bn.
Rusanow added: “Introducing new capital, through joint ventures, forms a key part of our long-term strategic plan.”
Rusanow said Scentre had invested A$3.3bn in the Westfield Sydney precinct since acquisition in 2001 and had undertaken the development of 97,5000sqm of retail and 74,000sqm of office space across three office towers.
With the latest transaction, Scentre has realised about A$2.4bn from Westfield Sydney, including the sale of the three office towers for A$1.5bn to Blackstone in 2019.
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