Mega sale: $1bn for half stake in Brisbane shopping centre
Leading shopping centre managers are tipped to bid for Commonwealth Superannuation Corporation’s half stake in Brisbane’s Indooroopilly Shopping Centre in a deal that could reap the fund up to $1 billion.
The stake is being offered, via Simon Rooney of JLL and Lachlan MacGillivray of Colliers International, with valuable management rights attached in the first such sale of a super-regional shopping centre in more than a decade.
Now, the likes of Vicinity Centres, Scentre Group, QIC Real Estate and ISPT are likely to seek to buy the stake and run it.
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Scentre, which has a dominant position in the city, has said it will look at the property and industry sources said it did not expect to spark competition law concerns.
Funds manager Eureka Real Assets, which acts as the investment manager for the $41 billion super scheme for public servants and the Defence Force, in June announced it would begin a sale process for the massive 116,000sqm retail complex.
CSC has owned the Indooroopilly Shopping Centre in its own right since 2006, after acquiring an initial interest in 1988. Its annual retail turnover is $667 million.
It completed a $450 million renovation in 2014 following a 30-month process to expand the centre from 86,780sqm.
It now has two department stores, Myer and David Jones, a Kmart and Target, Coles and Woolworths, a 16-screen cinema and more than 350 shops. The centre’s vacancy rate is less than 1.5%.
Indooroopilly is the pre-eminent centre servicing the inner western and southwestern suburbs of Brisbane.
This article originally appeared on www.theaustralian.com.au/property.
