Paragon REIT and Australian boutique fund manager MA Financial have sold a subregional shopping centre in NSW to Fawkner Property for A$192m (€119m).
Paragon REIT has an 85% interest in the Figtree Grove shopping centre with the remaining 15% held by MA Financial. They have owned the centre since 2018 when it was acquired from Blackstone for A$206m.
Paragon REIT said the transaction was done at a 5% premium over the independent valuation of A$183m as of 31 October 2024.
The Singapore-listed real estate investment trust said the divestment was part of its proactive asset management and enhancement strategies, and that it regularly evaluated opportunities to optimise its quality portfolio and to unlock strategic value for redeployment of capital.
In Australia, Paragon REIT still owns a 50% stake in Westfield Marion Shopping Centre in South Australia, which it bought in 2019 for A$670m. Paragon REIT is a subsidiary of Cuscaden Peak, a consortium made up of three shareholders – Hotel Properties Limited, Mapletree Investments, and CLA Real Estate Holdings.
Nick Willis, senior director at JLL which brokered the sale, said Fawkner Property was one of the most active investors in the sector, having spent A$1.1bn over the last 12 months to buy several centres including Cairns Central in Northern Queensland which they acquired last year from Lendlease for A$390m.
Willis said: “Sub-regional shopping centres have emerged as a preferred asset class for those investors looking back at the retail sector, owing to their attractive risk-adjusted returns, growth potential, and long-term value proposition.”
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