Singapore’s GIC has formed a A$750m (€471m) Australian retail centres investment joint venture with ASX-listed SCA Property.
The new vehicle, to be known as the SCA Metro Convenience Shopping Centre Fund, will be seeded with seven assets from SCA’s existing portfolio, which totals A$284.5m.
The sovereign wealth fund will hold an 80% equity interest in the joint venture, with SCA holding the balance. The Australian company will be the investment manager of the vehicle.
SCA said the partnership with GIC would enable the company to expand and accelerate participation in the convenience-retail sector.
It said the main focus would be on neighbourhood assets in lower-yielding metropolitan locations.
“The investment criteria of the JV ensures that there is limited conflict with SCP’s balance sheet activities, with the JV to have a first right over neighbourhood assets in the Sydney and Melbourne metropolitan areas until the target A$750m asset level has been achieved.”
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