Stakes sold in shopping centres
The deal involves the sale of a 50 per cent stake in each of four subregional 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 subregional shopping centres are at Mandurah in Western Australia, Cranbourne and Karingal in Victoria, and Warriewood in New South Wales. The convenience centre, Halls Head, is also in Mandurah.
Chief executive Steven Sewell said with the recent change of name the company was a much different organisation, and the transaction with ISPT continued the transformation of 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 portfolio including the flagship The Glen centre in Melbourne, which was sold to the Perth-based 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 represented another example of Australian real estate investment trusts (A-REITs) introducing joint-venture partners on major 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," Mr Rooney said.
Frequently Asked Questions about this Article…
The $371.4 million deal involved Federation Centres selling a 50% stake in each of four subregional shopping centres and a convenience centre to ISPT. The transaction, highlighted in the article as part of superannuation funds moving further into retail property, is intended to free up capital for redevelopment and acquisitions across Federation Centres' remaining portfolio.
The four subregional shopping centres named in the sale are at Mandurah in Western Australia, Cranbourne and Karingal in Victoria, and Warriewood in New South Wales. The convenience centre included is Halls Head, also in Mandurah.
According to the article, Federation Centres plans to use the funds raised from the 50% stake sales for redevelopment projects and to fund acquisitions elsewhere in its portfolio.
The article notes that superannuation funds are moving further into the retail property sector by becoming joint-venture partners on major retail assets. Bringing in partners like ISPT lets A-REITs access capital for development pipelines and other corporate needs while sharing ownership of large retail properties.
Federation Centres — which changed its name after resolving court action and debt issues when it was Centro — has continued its transformation by completing co-ownership deals in eight centres with a combined gross value of about $2.1 billion. CEO Steven Sewell said the ISPT transaction continued that transformation.
Simon Rooney of Jones Lang LaSalle, who advised on the sale, described this approach as a way for A-REITs to unlock capital while retaining development and asset-management rights. He said the strategy can enable A-REITs to progress development pipelines and, in some cases, to fund share buyback programs and repay debt.
Yes. The article says Federation Centres has completed co-ownership deals in eight centres totaling a gross value of about $2.1 billion. One earlier sale included a portfolio that contained the flagship The Glen centre in Melbourne, which was sold to the Perth-based Perron group.
Based on the article, bringing in joint‑venture partners can help A-REITs unlock capital for redevelopment and acquisitions, and may provide funds to reduce debt or support share buybacks. For everyday investors, that means such transactions can be a strategic way for A-REITs to pursue growth and balance-sheet improvements while still managing assets through their own development and asset-management teams.
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