ART buys another Westfield shopping centre stake
Australian Retirement Trust has agreed to buy into a second Westfield shopping centre.
The 50 per cent interest in Westfield Mt Gravatt at Upper Mt Gravatt will set it back $882.5 million.
The deal comprises $870m for the direct property interest – a 5.5 per cent capitalisation rate.
An adjacent block adds $12.5m.
Scentre Group is the seller and will retain the balance as well as its leasing and management roles.
The result is a 3.5pc premium to its December, 2025m book values.
Late last year, Scentre sold ART a 19.9pc stake in the flagship Westfield Sydney for $864m.
Scentre chief executive Elliott Rusanow said the transaction extended the relationship.
“We are very pleased to extend our strategic partnership with Australian Retirement Trust,” he added.
“Introducing new capital, through joint venturing our assets, forms a key part of our long-term strategic plan,” according to the executive.
“In the last 13 months, we have announced approximately $3.1 billion of new third-party capital coming into the Group through the joint venturing of our assets,” he added.
Mt Gravatt is 12 kilometres south of Brisbane’s CBD (continues below).
Westfield Mt Gravatt priced at $1.74b
Opened in 1971, formerly known as Garden City, Westfield Mt Gravatt spans 24.4 hectares, with 141,700 square metres across 376 tenancies.
It underwent a major redevelopment – also its last renovation – in 2014.
Anchors include Aldi, Big W, Coles, Kmart, Target and Woolworths.
Two years ago, Scentre reconfigured an ex-David Jones to allow for, amongst others, Harris Scarfe and Uniqlo, and an entertainment precinct.
About 17.4 million customers visited last year generating business partner sales of over c$1b.
The trade area includes more than 1.2m people.
ART manages more than $375b in members retirement savings.
Its Australian portfolio is worth half that (c$188b). About $3b has been invested here since last year with another $2.2b committed.
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