THE private property giant Gandel Group, owned by the billionaire John Gandel, is set to have an even bigger presence in the real estate sector in the coming year through acquisitions of companies as well as direct assets.
The new-look Centro Retail Trust has already caught the group's attention, and office towers and possibly hotels are also on the radar of the previously publicity-shy company.
Pushing it along a more aggressive path will be the new chief executive, Kylie Rampa, formerly the head of Macquarie Bank's CountryWide Trust.
She has been in the US for the past five years running the bank's property advisory business.
Ms Rampa will replace Peter Kahan, who has become Gandel's deputy chairman.
Mr Gandel is one of the country's richest men and has developed significant retail assets such as Chadstone and Northland in Melbourne.
Over the years, the group, like its competitor Westfield, has sold its stake in the assets, most recently offloading Northland to the Canadian Pension Fund.
Mr Gandel has always preferred a low profile and his company has never entertained the notion of listing on the stock exchange.
Instead, it has acquired stakes in real estate investment trusts, and now owns about 25 per cent of CFS Retail Property Trust and 16.5 per cent of Charter Hall Group.
It also owns a half share in Chadstone Shopping Centre in Melbourne's south-east, the nation's biggest mall, where it plans to add 25,000 square metres that could include office space and a hotel.
In Sydney, it has a slice of the upmarket Chatswood Chase through CFS Retail, and many neighbourhood centres through Charter Hall.
Mr Kahan said Ms Rampa's appointment was an indication the group would become very active next year.
"We are looking at everything. Certainly Centro is interesting, either as a takeover or for direct assets," Mr Kahan said.
"The [property] market is throwing up a number of opportunities in the REIT space and in unlisted, direct property. But we are not confined to retail. Office blocks and hotels are also of interest."
Mr Kahan said the group would look at any asset on its merit, including the MLC Centre in Sydney.
He said private cash from superannuation and sovereign funds as well as wealthy private investors would dominate asset purchases in the REIT sector next year.
"We are skewed to retail through Chadstone, where spending has been given a boost through the lower interest rates, and our centres are able to also attract the big international retailers, which helps the sales turnover," he said.
Frequently Asked Questions about this Article…
Who are the Gandel Group and John Gandel, and what is their role in Australian property investment?
The Gandel Group is a private property company owned by billionaire John Gandel. The group has developed major retail assets such as Chadstone and Northland in Melbourne and prefers to operate privately rather than list on the stock exchange, building influence through direct ownership and stakes in property trusts.
What kinds of acquisitions is the Gandel Group pursuing next year?
The group is preparing for a more aggressive acquisition phase, looking at both REITs and unlisted direct property. Targets mentioned include the new-look Centro Retail Trust (either as a takeover or for direct assets), office towers, hotels and landmark assets such as the MLC Centre in Sydney.
Who is Kylie Rampa and how might her appointment affect Gandel Group's acquisition strategy?
Kylie Rampa has been appointed chief executive; she was formerly head of Macquarie Bank’s CountryWide Trust and spent five years in the US running the bank’s property advisory business. Her arrival signals the group intends to become much more active in acquisitions.
Does the Gandel Group own stakes in listed property trusts, and which ones?
Yes. The group owns about 25% of CFS Retail Property Trust and about 16.5% of Charter Hall Group. It uses these strategic stakes, in addition to direct asset ownership, rather than listing the company itself.
What are the Gandel Group’s plans for Chadstone Shopping Centre?
The group owns a half share in Chadstone, Australia’s largest mall, and plans to add about 25,000 square metres of space that could include office space and a hotel as part of its development strategy.
How does the Gandel Group’s portfolio extend beyond Chadstone?
Beyond Chadstone, the group has a slice of the upmarket Chatswood Chase through CFS Retail and holds many neighbourhood centres via its stake in Charter Hall, giving it exposure across different retail formats.
What funding sources does the article say will dominate REIT and property purchases next year?
The article says private cash from superannuation, sovereign funds and wealthy private investors are expected to dominate asset purchases in the REIT sector next year, and these sources will be influential in deals the Gandel Group may pursue.
How could lower interest rates affect the Gandel Group’s retail assets and tenant activity?
According to the group, lower interest rates have boosted spending at retail hubs like Chadstone. That, combined with the ability to attract major international retailers, helps sales turnover at their centres, supporting the retail side of their portfolio.
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