A-REIT JV shows investor demand for retail assets
Australian retail assets are getting a lot of attention from institutional investors.
ISPT Pty Ltd, an A$8 billion (US$8.2 billion) unlisted superannuation fund, has acquired a 50 percent stake in a retail portfolio for A$371.4 million (US$380.1 million) from Federation Centres, formerly known as Centro Retail Australia, which had been plagued by debt.
Federation Centres, an Australian REIT that manages A$6.6 billion (US$6.8 billion) in shopping centres, previously formed a similar alliance with Perron Group. Following the joint venture with ISPT, Federation Centres will have a total of eight co-ownership strategies valued at A$2.1 billion (US$2.2 billion). The transaction is expected to close before the end of July.
Vincent Felteau, Asia Pacific portfolio manager at