Australian property fund manager ISPT is listing five assets from its ISPT Core Fund portfolio across Melbourne, Sydney and Western Australia, including the iconic Melbourne GPO.
ISPT announced it would sell the four retail assets and one office building because they did not align with the fund’s “desired scale or sector-allocation goals”.
The four retail centres comprise Melbourne’s GPO, The Strand Melbourne, Halls Head Central in Western Australia and Eastgate Bondi Junction.
It will also offload 270 Pitt Street in what is being touted as a “repositioning opportunity” in Sydney’s CBD.
ISPT head of funds management Matthew Brown said the proceeds from the disposals would be reinvested into the fund’s existing development pipeline in high-conviction sectors including industrial, health and life sciences.
“The real estate landscape is rapidly evolving and by divesting tactical assets and recalibrating our existing sector exposures to create a diversified portfolio we can optimise returns for our investors,” Brown said.
The $17.7-billion Core Fund is invested in more than 80 property assets across various sectors, including retail, office, industrial, education, health and life sciences, and is Australia’s largest wholesale property fund.
Melbourne’s GPO is a high-profile 3856sq m leasehold site with a renewed 10-year lease for Australia’s largest H&M flagship store. Nearby The Strand is also on the block with a 173-space carpark providing a unique offering in Melbourne’s CBD.
It’s the first time in 30 years the Eastgate Bondi Junction has gone to market with strong moving annual turnover of 56 per cent for the convenience-focused sub-regional shopping centre in Sydney’s eastern suburbs.
The real estate manager will also divest of its office block at 270 Pitt Street in Sydney’s CBD with DA approval for a brown-to-green renewal project, which is located next to the the new metro station, which was scheduled to open in early 2024.
It comes hot on the heels of ISPT filing plans in Brisbane for a placemaking 42-storey commercial tower above the Regent Theatre in the CBD.
