Australia’s sovereign wealth fund is selling more than AUD830m (€495m) of retail property.
The AUD149bn Future Fund is disposing of its 50% stake in Lakeside Joondalup, a prime regional shopping centre in Perth, and has just sold its 25% stake in Watertown Brand Outlet (formerly Harbour Town) on Queensland’s Gold Coast.
The two assets are jointly owned with the Lendlease-managed Australian Prime Property Fund Retail (APPF Retail). Future Fund and APPF Retail acquired the two shopping centres from the ING Retail Fund in 2010 for AUD475m.
APPF Retail has taken over Future Fund’s interest in Watertown for around AUD180m, but it is understood it waived its right to buy the half stake in Lakeside Joondalup last month.
JLL has been appointed to sell the stake, and industry sources estimate the Perth shopping centre to be valued at AUD1.2bn. Future Fund’s half share could sell for up to AUD650m.
Some of Australia’s biggest owners of retail centres, including AMP Capital, QIC, Vicinity Centres, and GPT, are likely buyers.
JLL’s head of retail, Simon Rooney, said regional shopping centres in Perth are tightly held and rarely offered for sale.
Given their high rate of sales turnover, super regional centres in the Western Australian capital are keenly sought, he said. Lakeside Joondulap has an annual sales turnover of AUD707m.
Future Fund has been liquidating its real estate portfolio to take advantage of the market cycle. In the past 12 months, together with Canada Pension Plan Investment Board, it has sold interests in two Australian shopping centres for AUD515m to Invesco Real Estate and AMP Capital, respectively.