Lendlease to Sell Half Stake in $1.7bn Westfield Carindale


Lendlease’s Australian Prime Property Fund is offloading a 50 per cent stake in Brisbane’s $1.7 billion Westfield Carindale, in the city’s south-east.

The global development giant appointed agents to sell the $1.7 billion centre just months after it offloaded a half stake in Adelaide's Westfield Marion at a 8 per cent discount to book value.

The remaining 50 per cent interest is owned by ASX-listed Carindale Property Trust, in which Scentre Group has a majority stake.

Scentre will retain management of the 139,605sq m centre, which is ranked ninth in Australia for total moving annual turnover, at $880 million.

CBRE head of retail capital markets Simon Rooney, and Colliers International head of retail and investment services Lachlan MacGillivray are leading the campaign.

Rooney says the sale campaign is expected to generate significant interest, given the quality, scale of the offering and heightened demand for core retail assets.

“Investors are now seeing attractive relative value in the retail sector and are moving on high quality retail plays given the unprecedented compression which has occurred in Australia’s prime CBD office and super prime industrial markets.”

“Demand for core retail assets is increasing, primarily from major offshore investors, who see that retail has been oversold,” Rooney said.

Located on a 16.45-hectare site in Brisbane's south-eastern suburbs, Westfield Carindale is anchored by a refurbished David Jones, Myer, Coles, Woolworths, a new Kmart, Big W, Target and an Event Cinemas.

The complex has 23 mini-majors, 291 specialty tenants, 51 kiosks and six offices.

The centre’s land holding also includes the adjoining and jointly-owned Carindale Home and Leisure Centre and Millennium Centre.

MacGillivray anticipates that low site utilisation and the opportunity for intensified development, including residential, commercial, short-term accommodation and retail expansion, will generate interest not just locally but from international buyers.

“The fundamentals of Australian retail remain attractive from a global perspective, with population growth among the strongest of the OECD countries, low supply per capita and a stable economy, with a recovery in wage growth to drive discretionary spending.”

Westfield Carindale services a trade area population of approximately 679,460, generating $9.7 billion in total retail expenditure.

Lendlease’s Australian Prime Property Fund fund controls a portfolio with interest in 11 predominantly major regional shopping centres.

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