Australian property group Stockland has sold a shopping centre in regional NSW to Melbourne-based property fund manager IP Generation for about A$315m (€192m).
The acquisition of Glendale Stockland is the single largest deal for IP Generation, which has been one of the most active acquirers of retail assets from the big property groups, including Lendlease, QIC and the former AMP Capital.
IP Generation has done the latest deal at a slight discount to the book value of the asset, which was recorded at A$320m.
With the latest deal, IP Generation’s portfolio of suburban and smaller regional shopping centre portfolio has grown to more than A$1bn.
IP Generation is creating a trust to hold the assets, along with its suite of other single-asset trusts. In its investment flyer, IP Generation said the trust would offer a distribution yield of 9% a year and the manager had forecast an internal rate of return of 17%.
A Stockland spokesperson told IPE Real Assets: “In the interim, we are committed to continuing to manage Glendale as we have always done,” she said. Stockland has managed the asset since buying it in 1996 and had twice refurbished the centre to refresh the centre.
Stockland is repositioning its business to more land-lease residential communities and logistics, and has capitalised on increasing appetite for retail assets. It recently sold two of its prized shopping centres – one in Nowra, a regional town, and another in suburban Sydney.
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