QIC sells half-stake in Melbourne’s Watergardens
QIC has sold a half-stake in Melbourne’s Watergardens shopping centre.
The buyer is the Commonwealth Superannuation Corporation, which manages pension and retirement schemes for ex-federal government employees and Australian Defence Force members, for $480 million.
The price is against a c$470m book value.
The 47.9 hectare holding at Taylors Lakes also holds significant development upside including with apartments.
Watergardens train station is near its south-west boundary. The Sydenham station is diagonally adjacent to its north-west tip.
The GPT Group will act as CSC’s investment manager – part of a c$2.6 billion mandate.
QIC will hold the balance and continue to manage the complex.
It was represented for the sale by Colliers’ Lachlan MacGillivray.
Mall, Quest, land
QIC developed Watergardens at 399 Melton Highway in 1995.
The complex includes the shopping centre, Watergardens Super Centre and an 86-room hotel leased to Quest.
There are 206 retail tenancies across 71,226 square metres. Aldi, Big W, Hoyts, Kmart and Woolworths are the anchors. There are also several mini-majors, kiosks and pad sites.
QIC said there are 11.7 million annual visits.
It had earmarked the broader precinct for a staged development with apartments and offices (continues below).
QIC Town Centre Fund sells stake
Watergardens was held 50:50 through the QIC Town Centre Fund and QIC Property Fund.
An investment partner was sought late last year for the QIC Town Centre Fund share CSC is buying.
At the time it said more than $110m in capital works and remixing had been spent since 2019 including the Town Square and South Mall precincts.
The deal comes five years since realestatesource.com.au reported Harvey Norman bought the nearby Watergardens Homeplace, including a showroom it occupies, for $97m.
That seller was again the QIC Property Fund and QIC Shopping Centre Fund
Taylors Lakes is about 20 kilometres north-west of Melbourne’s CBD.
CSC, GPT mandate approaches $3b
The Watergardens deal adds another retail asset to CSC’s property portfolio managed by GPT.
The pair have a $2.6b mandate, covering CSC’s 50pc interest in Indooroopilly Shopping Centre.
Offices including Melbourne’s landmark 101 Collins Street are also held through the arrangement.
CSC invests through the ARIA Investments Trust and uses external managers across its property portfolio.
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