GPT poised for shopping spree on $397m mall sale
GPT's chief executive, Michael Cameron, said the interest in the centre was sold to the National Pension Service of Korea at a 1 per cent premium.
The Lend Lease-managed unlisted Australian Prime Property Fund Retail owns the remaining 50 per cent of the centre.
GPT has been steadily reducing its minority interests in retail assets and instead boosting its bigger malls, such as Highpoint in Melbourne, through high-end redevelopments.
Analysts said the deal was positive for both GPT and Australian Prime Property Fund, which is also the centre's manager.
Erina Fair, which is the biggest centre on the Central Coast, was sold through Simon Rooney, the head of retail investments in Australasia for Jones Lang LaSalle.
He said the deal reflected the liquid capital markets in Australia backed by swelling demand from wholesale and superannuation investors.
Mr Rooney said offshore pension and sovereign wealth funds were looking to increase their exposure to direct real estate in Australia.
"Since the start of 2011, these investors have acquired $5.7 billion worth of ... major retail assets at or above book value," Mr Rooney said.
"The A-REITs have been the primary driver on the sell side, as they implement the strategy of selling down part shares in major assets while retaining management and development control, in order to redeploy capital into their development pipelines and subsequently drive the return on their equity invested."
Other sales include one by Coles of a 75 per cent interest in an initial portfolio of 19 shopping centres across Australia to the Industry Superannuation Property Trust for $532 million. Coles will retain a 25 per cent interest to keep the management rights but the deal will deliver proceeds to parent company Wesfarmers of about $400 million.
Federation Centres recently sold more than $308 million worth of assets from the former Centro syndicates with the funds redirected into the existing portfolio.
Mr Cameron said GPT had capitalised on the strong interest from domestic and overseas investors in quality property assets.
Frequently Asked Questions about this Article…
GPT Group sold its 50% interest in Erina Fair shopping centre on the NSW Central Coast for $397 million. The buyer was the National Pension Service of Korea and the deal was struck at a 1% premium.
GPT plans to use the $397 million proceeds to expand its office and industrial/business park investments, redeploying capital into those sectors rather than holding minority retail stakes.
The remaining 50% of Erina Fair is owned by the Lend Lease‑managed unlisted Australian Prime Property Fund Retail, which also acts as the centre's manager.
Analysts said the deal was positive because it lets GPT redeploy capital into higher‑priority development pipelines (offices and industrial/business parks) while the Australian Prime Property Fund retains management and ownership exposure—an approach that can boost returns on equity.
Yes. The article reports that offshore pension and sovereign wealth funds are increasing exposure to direct Australian real estate. Since the start of 2011 these investors have acquired about $5.7 billion of major retail assets at or above book value, according to Jones Lang LaSalle's head of retail investments in Australasia.
The article notes Coles sold a 75% interest in an initial portfolio of 19 shopping centres to the Industry Superannuation Property Trust for $532 million (Coles keeps 25% and management rights, delivering roughly $400 million to parent Wesfarmers). Federation Centres also sold more than $308 million of assets from former Centro syndicates and redirected the funds into its portfolio. These transactions illustrate strong liquidity and active portfolio reshaping by sellers.
The sale fits a wider A-REIT trend of selling down minority stakes in retail assets while retaining management and development control. That strategy frees capital to invest in development pipelines and larger redevelopments—GPT has been focusing on boosting big malls like Highpoint through high‑end redevelopments.
For everyday investors, the deal signals strong demand from domestic and overseas investors for quality property assets and a strategic shift by A-REITs to redeploy capital into offices, industrial/business parks and major redevelopment projects. Analysts viewed the transaction as positive for GPT and the Australian Prime Property Fund, though the article does not provide specific investment advice.
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