Resources
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ASX-listed Abacus Property Group has initiated a joint venture partnership with two funds managed by property investor ISPT in a deal worth $155 million.
The superfund-backed ISPT will take a 50 per cent stake in two of Abacus' "super convenience" retail assets: Ashfield Mall in Sydney and Lutwyche City Shopping Centre in Brisbane.
The first asset, the 24,853sq m Ashfield Mall, is a sub-regional shopping centre in Abacus' super convenience retail format.
Anchored by a Woolworths, Coles, ALDI and Kmart, the centre is currently 98 per cent occupied. ISPT’s Core Fund acquired its 50 per cent interest in the centre for $102.3m.
Abacus acquired the site in 1997.
The Lutwyche City Shopping Centre is the second asset
The ISPT Retail Australia Property Trust has acquired 50 per cent of the Lutwyche City Shopping Centre on a conditional forward funding arrangement.
The deal is worth about $53 million for Abacus.
The centre, located in a well-established inner-city Brisbane suburb is currently undergoing a large redevelopment to the super convenience format favoured by Abacus.
Lutwyche currently offers 12,103sq m of gross lettable area, with post refurbishment figures expected to be around the 22,100sq m mark with the inclusion of Woolworths, Coles and ALDI.
The centre was last valued in 2015 with an estimated value of between $70 and $80 million.
The cash inflow for Abacus from these two transactions in conjunction with settlement of Bacchus Marsh Village Shopping Centre will be approximately $217 million.
Abacus said in a statement that the cash will aid the company in reducing its short term debt position.
