IFM Investors has sold a majority stake in an Australian mall to Vicinity Centres for A$212m (€127m).
Vicinity, which already owns 25% of the Uptown mall, located in Brisbane, intends to acquire “ancillary land rights” from the government to create a prime retail precinct.
Speaking at the listed group’s earnings call, Peter Huddle, Vicinity’s CEO and managing director, said: “Securing full ownership will enable Vicinity to leverage its core competencies across development, executive and project leasing, and accelerate the revitalisation of Uptown and unlock the latent value of this asset.
“Investors demand for strategically located, premium retail assets with solid growth potential remain strong,” he said, adding that Uptown was a “landmark retail asset with a long history and deep connection to Brisbane’s retail identity.”
Vicinity has plans to expedite the redevelopment of Upton, projected to cost an estimated A$300-A$350m.
Simon Rooney, CBRE’s head of retail capital markets – Pacific, who negotiated the sale, said: “This transaction underscores the strengthening investor conviction in Australia’s shopping centre market, particularly prime CBD destinations that offer resilient footfall, diversified income and clear value add pathways.
“With significant public infrastructure investment catalysing catchment growth and connectivity, assets like Uptown are increasingly sought after by both domestic and offshore capital.”
To read the latest IPE Real Assets magazine click here.
