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Abacus, ISPT Partner on 'Super Convenience' Retail

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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.

Lutwyche
Once refurbished, Brisbane's Lutwyche City Shopping Centre (pictured) offer 22,100sq m of lettable retail area.


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.

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Article originally posted at: https://theurbandeveloper.com/articles/abacus-property-teams-up-with-ispt-in-new-joint-venture