Singapore-listed Frasers Property Ltd‘s Australian subsidiary and its Japanese joint venture partner Sekisui House have sold the three final retail assets in the A$2-billion ($1.3 billion) Central Park Retail in Sydney’s central business district for A$174.5 million ($117 million), according to a filing.
The three assets – Central Park Mall, DUO Retail (eight retail outlets) and Park Lane Retail (six retail outlets) – were sold to a consortium comprising Fortius Funds Management and SC Capital Partners Group, on behalf of RECAP V Fund.
The transaction completes the final part of the JV’s divestment strategy, as its flagship 12-year Central Park development nears completion, according to a company statement.
“The strong interest we received throughout the campaign reflects not only the quality of the retail offer but also the unique role it plays serving one of Sydney’s premier urban communities in a high-profile, well-patronised location, said Mick Caddey, Development Director at Frasers Property Australia.
The retail portfolio encompasses 14,600 sq m of gross lettable area spread across five levels. Some of its noted tenants include Woolworths supermarket, and Palace Cinema Complex, located at the Central Park Mall.
“The acquisition of Central Park Retail demonstrates that value enhancement opportunities can be acquired in even the most premium located urban retail assets,” said Sam Sproats, CEO and Executive Director at Fortius Funds Management.
The assets were sold in one line by Lachlan MacGillivray, Head of Retail Investment Services at Colliers International, following an international Expressions of Interest campaign which attracted substantial interest.
The sale represents a significant acquisition of a 100 per cent interest with management rights in a high-calibre retail centre in Sydney’s CBD, according to Fraser’s disclosure to the Singapore Exchange.
Frasers Property Australia Pty Limited is one of Australia’s leading diversified property groups and is the Australian division of the Singapore-listed Frasers Property Limited.
In June, the firm partnered with ESR Australia to jointly acquire a 4.67-hectare business park development site in Melbourne suburb Mulgrave area, valued at A$400 million ($276.28 million), when completed.
The joint development is a 50:50 split between Frasers Property and ESR. Frasers Property secured the site while ESR will undertake the development. The entire development is forecast for completion by late 2025.