Australia’s largest unlisted property fund, ISPT Core Fund, is to divest a portfolio of office and retail properties, worth between A$500m and A$600m (€300m and €360m), as it steps up exposure to logistics, health and life sciences.
The A$17.7bn fund, backed by Australian industry super funds, undertook a review of its assets, and identified four of its shopping centres and an office building in Sydney CBD for disposal. The four retail centres include two CBD shopping malls in Melbourne, a centre each in Sydney and Western Australia.
ISPT said these assets were not aligned with its desired scale or sector allocation goals. The core fund is invested in more than 80 property assets across various sectors, including retail, office, industrial, education, health and life sciences.
The proceeds generated from the sales will be predominantly reinvested into the fund’s existing development pipeline in the ”high-conviction sectors” of industrial and health/life sciences.
Matthew Brown, head of funds management at ISPT, said: “The real estate landscape is rapidly evolving, and by divesting tactical assets and re-calibrating our existing sector exposures to create a diversified portfolio we can optimise returns for our investors.”
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