A Singapore-based investment trust is proposing to acquire an 85 per cent stake in Figtree Grove, as part of a deal worth more than $200 million.
Investment bank Moelis Australia is jointly acquiring the shopping centre with its partner Singapore Press Holdings (SPH) Reit Management, as part of a new joint venture.
SPH is proposing to acquire the 85 per cent stake in the shopping centre as part of the new ownership model, with Moelis owning the other 15 per cent.
SPH is a Singapore-based real estate investment trust, and this is their first foray overseas.
The proposed sale’s price totals $206 million; SPH’s contribution to this is worth approximately A$188.2 million.
Contracts have exchanged on the deal; the Mercury understands that settlement is expected to be imminent.
The site is anchored by a 24-hour Kmart, Coles and Woolworths supermarkets.
It also features 72 specialty stores, as well as other shops and services.
The property has an occupancy rate of 98.5 per cent, and is expected to generate a net property income yield of about six per cent.
The proposed acquisition is to be financed through a combination of debt and internal sources.
“We are pleased to announce the acquisition of an established sub-regional shopping centre in Australia with our joint venture partner, Moelis Australia Limited,” Susan Leng, chief executive officer of SPH said.
“The acquisition of Figtree Grove shopping centre is a strategic fit with SPH REIT’s portfolio of quality assets and in-line with our strategy to expand our footprint into Australia.”
In 2015, Westfield Figtree and Warrawong were sold to global real estate giant Blackstone. The sale was part of a package whereby the Scentre Group reaped $783 million from the sale of four centres.
Blackstone put the shopping centre, now known as Figtree Grove, up for sale in September.
The centre was being marketed via Colliers International’s Lachlan MacGillivray