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$602 million co-ownership transaction with Challenger
AUSTRALIA, 5 JUNE 2013 – Acting on behalf of Federation Centres (formerly Centro Retail Australia), Simon Rooney of Jones Lang LaSalle has negotiated $602 million of half shares in six retail assets to Challenger. The overall transaction value equates to a passing yield of 7.42%.
Federation Centres has announced that it has entered into conditional agreements with various funds managed by Challenger.
Australian Head of Retail Investments at Jones Lang LaSalle, Simon Rooney said, “The transaction is ideal for Challenger as it allows them to enter into a partnership and gain immediate exposure to a portfolio of retail assets of significant scale that is diversified across a range of states and shopping centre formats.
“While these type of joint venture transactions are the overriding theme in the Australian market, it is part of a broader trend in global real estate capital markets and we are seeing the partnering approach adopted all over the world,” said Mr Rooney.
This latest announcement by Federation Centres follows GPT’s sale of a half share in Erina Fair for $397.1 million in May and precedes a number of major transactions to be completed in the near term. As a result, total retail transaction volumes are expected to be strong in 2013 with approximately $3.0 billion being recorded year to date, and follows a record year for transaction activity in 2012 ($6.3 billion).
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