This article is from the Australian Property Journal archive
GPT has come to an arrangement with the GPT Wholesale Shopping Centre Fund (GWSCF) that will see the ASX-listed group take on a greater ownership stake in Melbourne megamall Highpoint, and the pair take co-ownership of Rouse Hill Town Centre (RHTC) in Sydney’s north-west.
Net proceeds to GPT are around $176.1 million after the divestment of 50% of RHTC at $395 million and the acquisition of an additional 8.33% stake in Highpoint, at $204.6 million, and following transaction costs.
GPT’s direct ownership of the 149,600 sqm Highpoint, in Melbourne’s north-west, increases to 25%. The deal values the entire centre at around $2.456 billion.
The transactions reflect book value for both assets as at 31st December.
Until re-invested, the net proceeds will be used to reduce gearing.
“The retail partnership for RHTC and GPT’s acquisition of an additional interest in Highpoint is a very positive step for both GPT and GWSCF. GPT increases its holding to 25% in one of the pre-eminent shopping centres in Australia and GWSCF diversifies its portfolio with a premier NSW asset that has an expansionary development commencing in the first half of 2025,” said GPT CEO Russell Proutt.
“The transactions align with our strategy to provide innovative investment solutions to deliver superior returns for our investment partners. As the largest single investor in GWSCF, the group benefits from the strengthening of the fund’s portfolio composition while also surfacing capital from direct property holdings to reinvest in new opportunities. “
GPT will continue to perform leasing, property, development and investment management services for both RHTC and Highpoint.
David Sleet, GWSCF’s fund manager, said the addition of RHTC is “on strategy for the fund, enhancing asset quality and portfolio composition while also providing exposure to a strong growth market in Sydney”.
Hines and Haben settle on record-breaking deal
Meanwhile, Hines and Haben have completed their acquisition of Westpoint shopping centre in Sydney’s Blacktown, struck last year at $900 million in Australia’s biggest-ever single-asset retail transaction.
Anchored by Woolworths, Coles and Aldi, Westpoint has about 104,000 sqm of retail space, making it one of the biggest shopping centres in Sydney’s west.
For US-based Hines, the acquisition is its first retail asset in both Australia and the Asia Pacific region.
“The retail sector has undergone a remarkable transformation, and we believe it is now poised for continued growth,” said David Warneford, country head of Australia and New Zealand at Hines.
“The retail sector is showing promise, but it’s important to focus on the right opportunities. Not all retail is created equal. There are opportunities to invest in places that truly stand out, especially for those who know where to look. Strategic locations like Westpoint – supported by strong demographic and active asset management – are particularly attractive.”
Ben Finger, managing director at Haben, said was attracted to the asset’s strong performance and its prime nine-hectare metropolitan Sydney location, situated in NSW’s largest and fastest-growing Local Government Area.
“The attractive investment fundamentals, including a strong IRR, and the acquisition price being well below replacement cost, further reinforced the strategic appeal of this investment.”
The vendor was Queensland Investment Corporation, which has been selling down major retail assets. It has lobbed its Woodgrove Shopping Centre in Melbourne’s growing outer west up for sale with expectations of half a billion dollars – coming close to a sale with Dexus at $450 million – and it offloaded its half-share in Perth’s Claremont Quarter in a $207 million deal with co-owner, commercial property company Hawaiian.
Following several years of subdued activity, the retail sector bounced back strongly in 2024 to finish the calendar with $8.4 billion worth of transactions, according to JLL, the fourth-highest return since 2010 and 17% above the 15-year average.
