Future Fund Sells Out of Harbour Town on $180m Deal


Multibillion-dollar Future Fund has sold its 25 per cent interest in Harbour Town Gold Coast, the largest outlet centre in Australia, for $180 million.

The quarter share was purchased by an existing co-owner, the Lendlease-managed Australian Prime Property Fund Retail, with the acquisition lifting its control of the asset to 50 per cent.

Harbour Town Gold Coast is Australia’s largest outlet centre, comprising a total GLA of 55,225 square metres.

With more than $440 million in total MAT, Harbour Town Gold Coast is the top outlet centre in Australia, this accounts for $120 million more than DFO Homebush Sydney.

JLL negotiated the sale of Future Fund’s 25 per cent interest.

JLL head of retail investment Simon Rooney said assets which are performing well and have strong retail fundamentals are still achieving significant premiums.

“There is a limited pool of quality outlet centres in Australia,” he said.

“The discount nature of the asset class means these centres can be countercyclical. They can achieve resilient sales growth even when household discretionary spending capacity is under pressure.”

Rooney says the Gold Coast has been benefitting from a strong rebound in tourism.

“With 7.8 per cent per annum growth in international visitor arrivals forecast for 2018, this is nearly four times the long-term average,” he said.

The centre services a trade area population of 507,170 residents as of 2017, which is expected to grow by 2 per cent per annum scaling up to 742,640 people by 2036.

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