GIC buys controlling stake in five malls
Singapore sovereign wealth fund GIC has bought a 90 per cent stake in five neighbourhood shopping centres.
The $225 million deal was announced in March by the seller, RAM, on behalf of the ASX-listed Essential Service Property Fund (REP), which will retain the balance.
The disposal forms part of the manager’s plan to increase the ratio of healthcare in the trust’s portfolio to about 80 per cent.
The fund holds 26 assets worth a total c$676m.
Portfolio vacancy is three per cent.
The weighted average lease expiry is seven years.
Supermarket-anchored assets
Three of the shopping centres are in Queensland including the priciest, Coomera Square on the Gold Coast, which REP valued at $83.2m in December (continues below).
The portfolio also includes Springfield Fair in Ipswich and Keppel Bay Plaza in Yeppoon, near Rockhampton – both investments appraised at $40m.
In New South Wales the deal includes Coles Rutherford – valued at $25.5m in December.
The final asset, Mowbray Marketplace (which includes the Target Centre) is in Launceston, Tasmania.
REP held this on its book at $47m.
The assets were assembled under RAM’s Sovereign Strategy and are anchored by supermarkets and other non-discretionary retailers.
Unitholders were told in March that the transaction would accelerate debt reduction and support the resumption of its on-market security buy-back program.
Subscribe to our newsletter at the bottom of this page.
