Herbert Smith Freehills has advised Federation Centres, formerly Centro Retail Australia, on a co-ownership deal with property fund ISPT, which acquired a 50% interest in five retail assets for a purchase price of A$371.4 million on an average yield of 7.49% and at a premium of 2.9% above book value.
Under this agreement, ISPT will purchase a 50% stake in five retail assets, including four sub-regional shopping centres in Mandurah (WA), Cranbourne and Karingal (Vic) and Warriewood in (NSW) and a convenience centre in Halls Head, Mandurah (WA). Federation Centres will retain its 50% stake in the assets and continue to deliver property management services to each of these centres.
The Herbert Smith Freehills team included Partners Michael Back and David Sinn, who were supported by senior associates Tim Mathers and Emily Peverill.
“This transaction follows a recent trend of large A-REITs looking to recycling their capital by selling off part shares in major property assets at a premium value,” said Sinn. “With most of our A-REITs now cashed up and looking to move, we expect to see a shift in the market from selling to buying over the coming months.”
Holding Redlich advised ISPT on this transaction.
Herbert Smith Freehills has one of Australia’s leading legal practices for the Real Estate sector and advises many of the world's leading investors, developers, funders, private equity houses, occupiers and corporates across all areas of their real estate matters.
The group has advised on many of the biggest and most complicated property transactions, including advising Lend Lease on its successful tender to develop Sydney’s Barangaroo South development, Australia’s largest urban renewal project since 2000; the consortium Destination Sydney on its successful bit to build the Sydney International Convention Exhibition and Entertainment Precinct project; and Lend Lease on its recent appointment to develop the AU$1 billion Waterbank Precinct urban renewal project in East Perth.
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