Two Lendlease retail property funds have sold Australian shopping centre assets in a A$430m deal.
The Australian Prime Property Fund Retail (APPF Retail) sold a 50% stake in Harbour Town to the listed retail mall owner, Vicinity Centres, for A$358m. Another Lendlease-managed fund, Sub Regional Retail Fund, sold Northgate Shopping Centre in Geraldton to Primewest, now controlled by Centuria, for A$71.2m.
Grant Kelley, CEO and managing director of Vicinity, said the acquisition reflected the group’s strategy to invest in premium retail assets “where we can buy well and add value”.
Vicinity said the acquisition would bolster its market share leadership in Australia’s growing outlet centre category.
The remaining 50% of Harbour Town continues to be owned by Lewis Land, a Queensland property business, which waived its pre-emptive right to the Lendlease stake.
Centuria plans to launch a single-asset, unlisted closed-end wholesale fund to hold Northgate shopping centre.
Scott Mosely, Lendlease managing director, investment management, said the sale of Harbour Town presented a “very good outcome for our investors”.
“It is in line with the fund’s capital management strategy that includes providing liquidity to our investors who have sought it.”
The A$4bn APPF Retail fund has also sold other assets in South Australia and Victoria, raising more than A$800m to meet redemption requests.
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