Federation in $371m shopping centre deal
The deal involves the sale of a 50 per cent stake in each of four sub-regional shopping centres and a convenience centre by Federation Centres, with the funds being used for redevelopment and acquisitions across the rest of the portfolio.
The four sub-regional shopping centres are at Mandurah in Western Australia, Cranbourne and Karingal in Victoria, and Warriewood in NSW. The convenience centre, Halls Head, is also in Mandurah.
The chief executive, Steven Sewell, said with the recent change of name to Federation Centres the company was a much different organisation and the transaction with ISPT continued to transform the business.
Following the conclusion of court action and debt issues under its previous guise as Centro a year ago, Federation Centres has completed co-ownership deals in eight centres with a gross value of $2.1 billion.
The first of these was a property portfolio that included the flagship The Glen centre in Melbourne, which was sold to the private Perron group.
The Australian head of retail investments at Jones Lang LaSalle, Simon Rooney, who advised on the sale, said the move by Federation Centres was another example of Australian real estate investment trusts (A-REITs) introducing joint venture partners on retail assets while retaining development and asset management rights.
"This enables A-REITs to unlock capital to move forward with development pipelines and, in some instances, to fund share buyback programs and repay debt," said
Mr Rooney.
Frequently Asked Questions about this Article…
The article reports a $371.4 million transaction in which Federation Centres sold a 50% stake in each of four sub‑regional shopping centres and one convenience centre to ISPT Pty Ltd. The proceeds are earmarked for redevelopment and acquisitions across Federation Centres' remaining portfolio.
The deal covered four sub‑regional shopping centres located at Mandurah (WA), Cranbourne (VIC), Karingal (VIC) and Warriewood (NSW), plus the Halls Head convenience centre in Mandurah (WA).
According to the article, Federation Centres sold 50% stakes to raise capital to fund redevelopment and acquisitions across the rest of its portfolio and to continue transforming the business after its recent restructuring and name change.
Federation Centres (formerly Centro Properties) has been reshaping its business after resolving court action and debt issues under its previous name. CEO Steven Sewell said the company is now a different organisation and that the ISPT transaction continues to transform the business. The group has completed co‑ownership deals in eight centres with a combined gross value of $2.1 billion.
Jones Lang LaSalle advised on the sale. Simon Rooney, its Australian head of retail investments, said the move is another example of A‑REITs bringing in joint‑venture partners on retail assets while retaining development and asset‑management rights, which unlocks capital for development.
Yes. The article notes that the first co‑ownership sale was a property portfolio that included the flagship The Glen centre in Melbourne, which was sold to the private Perron group.
The article cites Simon Rooney saying that introducing joint‑venture partners allows A‑REITs to unlock capital to progress development pipelines and, in some instances, to fund share buyback programs or repay debt — while typically retaining development and asset‑management rights.
Everyday investors can note that the deal is part of Federation Centres' strategy to raise capital for redevelopment and acquisitions after restructuring. The transaction reflects a broader A‑REIT trend of using joint ventures to unlock capital, which can affect growth prospects and balance‑sheet strength — outcomes investors often watch closely.
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