US fund manager Invesco has purchased a half-share in Brisbane’s Grand Plaza Shopping Centre at Brown’s Plains for $215 million.
The Vicinity Retail Partnership sold a 50 per cent interest in the $430 million shopping centre at a six per cent yield.
The Vicinity Retail Partnership also recently sold a 50 per cent share in West Australia’s Rockingham Shopping Centre to AMP Capital for $305 million.
Vicinity will continue to own its own half stakes in both the Browns Plains and Rockingham malls along with the valuable management and development rights.
The Vicinity Retail Partnership, which includes the Canada Pension Plan Investment Board and Future Fund along with two other unnamed parties, is part of a broader sell-out from a $500 million portfolio of malls managed by Vicinity.
The partnership has been selling down its assets as the fund reaches the end of its eight-year term.
The Grand Plaza shopping centre, is located 22 kilometres south of the Brisbane CBD and has a gross leasing area of about 51,900 square metres. It is anchored by Kmart, as well as Target and Big W DDS, three supermarkets, speciality tenancies as well as parking for over 2,500 cars.
JLL’s Australian head of retail investments Simon Rooney was the broker for both the Browns Plains and Rockingham sales for Vicinity.
A number of stakes have changed hands in the more valuable shopping centres as retail centres come under pressure from online retailers.
In December, Mirvac sold a half stake in Kawana Shoppingworld on Queensland's Sunshine Coast to ISPT for $186 million.
Late in 2017 the Commonwealth Superannuation Corporation sold half of Indooroopilly Shopping Centre to two AMP Capital funds in a deal worth more than $800 million. AMP Capital has assumed management of that centre.
Invesco has a range of holdings in Australia which has been focused on office towers and industrial parks. This purchase broadens their portfolio in this market.
The global investment management firm has just announced assets under management of US$934.2 million a decrease of 1.2 per cent over the prior month.
Invesco and Challenger have made a $430 million investment into Lendlease’s new Docklands tower which will become the new home of the ANZ Bank.