Lendlease-managed Australian Prime Property Fund Retail (APPF Retail) is selling a shopping centre in Victoria to a DeGroup for around A$136.5m (€88m).
The CS Square shopping mall houses three supermarkets and discount department stores and is located in Caroline Springs, a suburb in Melbourne’s west.
Colin DeLutis, chairman of DeGroup, said his firm had been following the performance of CS Square for a long period of time and felt it was a “perfect fit” for his company’s portfolio of convenience and service-focused centres.
“The defensive nature of the asset is further strengthened due to its significant proportion of income derived from national businesses and, importantly, a centre WALE in excess of seven years,” he said.
“We also see a major opportunity to take advantage of current market dislocation in pricing between sub-regional yields and bond rates, which we expect to continue for some time to come.”
Anne MacSporran, fund manager of APPF Retail, said: “The strategic divestment of CS Square represents a strong result for investors, especially in light of recent market conditions.”
She said the outlook for Australian retail remained positive, with sales stabilising post-pandemic.
“With the sector undergoing an evolution in response to changing consumer trends, APPF Retail is progressing its urban growth centre strategy, positioning our core assets to capitalise on mixed-use opportunities which will cater to future lifestyle, technology and shopping needs,” she said.
To read the digital edition of the latest IPE Real Assets magazine click here.
No comments yet