An affiliate of GIC, Singapore’s sovereign wealth fund, and Vicinity Centers, one of Australia’s retail property groups with a fully integrated asset management platform, have entered into an agreement to exchange stakes in malls in Sydney.
GIC will acquire a 49 percent stake in Vicinity’s Chatswood Chase Sydney worth A$562.3 million ($430.84 million) and Vicinity will acquire a 50 percent stake in GIC’s Queen Victoria Building, The Galeries and The Strand Arcade (Sydney CBD centres) worth A$556.0 million ($426 million).
Vicinity will continue to manage Chatswood Chase Sydney and will assume property management of the Sydney CBD centres upon settlement of the transaction.
The Sydney CBD centres are prime assets in GIC’s Ipoh portfolio since 2003. Under Ipoh’s property management, GIC has completed several significant asset enhancements, including refurbishments, re-developments and tenant re-leasing projects.
Chatswood Chase Sydney is a premium, high-performing major regional shopping center situated in one of Australia’s most affluent catchments on Sydney’s North Shore, with more than 11 million consumer visits annually. The center is anchored by high-performing David Jones, Coles and Kmart stores and has 170 specialty stores, including a number of premium brands.
This transaction is expected to settle in early 2018 and is subject to approvals by Sydney City Council, RailCorp and the Foreign Investment Review Board.
