Australian real estate investment trust GPT Group is expanding its retail portfolio through a A$1.2bn (€731m) acquisition of two regional shopping centres from a Lendlease-managed fund.
GPT’s open-ended vehicle, GPT Wholesale Shopping Centre Fund (GWSCF), is investing A$622m to acquire a 50% interest in Sunshine Plaza in Maroochydore, Queensland, alongside A$568m for full ownership of the Macarthur Square asset in Campbelltown, New South Wales.
The stakes are being acquired from Lendlease’s Australian Prime Property Fund Retail (APPFR).
ASX-listed GPT said GWSCF will fund the acquisitions through the proceeds of its recent equity raise and available debt capacity.
David Sleet, GWSCF’s fund manager, said: “Acquiring these interests materially increases GWSCF’s diversification and scale, responding to the fund’s growing investor base. These dominant, super-regional centres in two of Australia’s fastest-growing catchments enjoy sustained population growth and resilient, everyday spending which underpins durable, inflation-linked property income.”
Russell Proutt, GPT’s CEO and managing director, said: “These acquisitions are consistent with GPT’s strategy to grow our investment management platform through aligned partnerships. We look forward to partnering with GWSCF at Sunshine Plaza, and to further leverage the group’s operational capabilities to optimise returns for GWSCF investors and GPT securityholders at both assets.”
As reported late last year, Lendlease was planning to sell all the assets within the A$2.9bn APPFR fund to meet investor redemption requests, with the vehicle expected to be wound up next year.
At the time, APPFR owned five assets, including 50% stakes in Sunshine Plaza and Westfield Carindale in Queensland, Lakeside Joondalup in Western Australia and Macarthur Square. The fund also jointly owned Erina Fair on the NSW Central Coast alongside South Korea’s National Pension Service.
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