A procuring centre fund managed by Australian property group GPT has bought its 50% stake in a Melbourne asset to the native investor Nikos Property for A$385m (€230m).
The sale of Northland Buying Centre by the GPT Wholesale Buying Centre Fund (GWSCF) is Victoria’s largest retail transaction since 2018.
Neighborhood Centres, which manages the asset, holds the remaining 50% curiosity within the procuring centre and it’s Nikos’s fourth partnership with Neighborhood Centres.
GWSCF fund supervisor, David Sleet, mentioned the divestment of the fund’s stake in Northland continued the implementation of its technique to recycle property to reinforce portfolio high quality and composition. The sale was additionally to create liquidity for traders and place the car for persevering with “constant outperformance”.
CBRE’s head of retail capital markets – Pacific, Simon Rooney who launched Nikos and negotiated the transaction, alongside co-agent Lachlan MacGillivray, Colliers’ Asia Pacific managing director, retail capital markets, mentioned Nikos was interested in the centre’s sturdy efficiency, safe main tenant covenants and vital future improvement potential, positioned 13km north-west of the Melbourne CBD.
Specifically, he added Nikos noticed the location as providing potential for a long-term staged masterplan improvement topic to the related planning approvals.
Northland Buying Centre occupies a 19.04ha website and affords vital improvement potential through a masterplan for a 30-year staged improvement.
MacGillivray added: “The retail sector is experiencing vital tailwinds, as demonstrated within the current actual property funding belief, highlighting constructive leasing spreads and very robust centre occupancy.
“We count on to see an additional enchancment in general funding exercise and investor demand as rates of interest are lowered, with a number of massive regional procuring centre transactions at the moment in play.”
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