Abacus, ISPT Partner on 'Super Convenience' Retail
ASX-listed Abacus Property Group has initiated a joint venture partnership with two funds managed by property investor ISPT in a deal worth $155 million.
The superfund-backed ISPT will take a 50 per cent stake in two of Abacus' "super convenience" retail assets: Ashfield Mall in Sydney and Lutwyche City Shopping Centre in Brisbane.
The first asset, the 24,853sq m Ashfield Mall, is a sub-regional shopping centre in Abacus' super convenience retail format.
Anchored by a Woolworths, Coles, ALDI and Kmart, the centre is currently 98 per cent occupied. ISPT’s Core Fund acquired its 50 per cent interest in the centre for $102.3m.
Abacus acquired the site in 1997.
Related: Abacus Buys into Growing Melbourne City Fringe for $95m
The Lutwyche City Shopping Centre is the second asset
The ISPT Retail Australia Property Trust has acquired 50 per cent of the Lutwyche City Shopping Centre on a conditional forward funding arrangement.
The deal is worth about $53 million for Abacus.
The centre, located in a well-established inner-city Brisbane suburb is currently undergoing a large redevelopment to the super convenience format favoured by Abacus.
Lutwyche currently offers 12,103sq m of gross lettable area, with post refurbishment figures expected to be around the 22,100sq m mark with the inclusion of Woolworths, Coles and ALDI.
The centre was last valued in 2015 with an estimated value of between $70 and $80 million.
The cash inflow for Abacus from these two transactions in conjunction with settlement of Bacchus Marsh Village Shopping Centre will be approximately $217 million.
Abacus said in a statement that the cash will aid the company in reducing its short term debt position.
SEQ Developers Flex Designs to Ride Towering Wellness Wave
From Underground to Skyline: The Sydney Metro Transformation
Moreton Bay Reveals Sprawl-Free Future for Surging Population
Beyond Energy Efficiency: Cutting Carbon Property’s New Frontier
