SC Capital has partnered Fortius Funds Management to buy three retail assets in central Sydney for A$175 (€107m) from Frasers Property Australia and Sekisui House Australia.
Singapore-based SC Capital is buying a stake in the Central Park Retail assets for its US$850m (€770m) Real Estate Capital Asia Partners V fund.
The assets are Central Park Mall, the largest of the three, DUO Retail and Park Lane Retail.
IPE Real Assets understands that the SC Capital fund will own 75% of the assets, while Fortius will hold 25%.
Andrew Heithersay, SC Capital managing director and partner, told IPE Real Assets: “Indeed, these are retail assets, but you can’t paint all retail with the same negative brush.
“Central Park has a very vibrant and dynamic catchment area. There are 100,000 students from three large universities in close proximity, so the footfall in the centres is high. The exposure that these centres have makes them compelling assets to own.”
Heithersay said both the student and local populations support the vertical village concept on which the whole urban regeneration project was based.
“We can build on this success and take it to the next level by remixing the tenancies and creating even more productive centres,” he said.
Sam Sproats, CEO and executive director, Fortius Funds Management, said the acquisition of Central Park Retail demonstrated that value enhancement opportunities in a premium urban location
“Strategically located in a trade area undergoing rapid gentrification and redevelopment, it supports a diverse and growing demographic with retail expenditure projected to increase by 4.2% per annum,” said Sproats.
“Central Park Retail is at the centrepiece of one of Sydney’s most iconic mixed-use urban regeneration projects of recent times,” he said.
Suchad Chiaranussati, chairman/founder of SC Capital Partners Group, said the acquisition was consistent with the firm’s strategy of acquiring well-located, income-generating assets with long-term enhancement potential through repositioning.
This is the fifth time that the Singapore-based manager has partnered with Sydney boutique fund manager Fortius, which counts the likes of BlackRock among its investors in buying real estate in Australia.
Mick Caddey, development director, Frasers Property Australia, said the sales campaign reflected the “unique” role the assets played in serving one of Sydney’s premier urban communities in a high-profile, well-patronised location.
The sale of the Central Park Retail assets is the final component of Frasers Property Australia and Sekisui House Australia’s divestment strategy as its flagship 12-year Central Park development nears completion.
The asset is valued at A$2bn.