Frasers Property Australia and Sekisui House Australia, partners in a joint venture to develop the Central Park project in Sydney, Australia, have sold the final three retail assets in the mixed-use development for A$174.5 million (S$162.3 million), the companies said in a filing to SGX Thursday.
The assets were sold to a consortium including Fortius Funds Management and SC Capital Partners Group on behalf of its RECAP V Fund, the filing said.
The campaign to sell the assets attracted “substantial interest” from global players, the statement said.
Central Park, located in Sydney’s central business district, includes three retail assets: Central Park Mall, which opened in 2013 and includes a Woolworths supermarket, DUO Retail and Park Lane Retail, the filing said.
Mick Caddey, development director for Frasers Property Australia, said the sale was part of the joint venture’s strategy of realizing value from the assets developed in the Central Park project.
The sale of the retail assets is the final component of the divestment strategy as the 12-year Central Park project nears completion, the filing said.
Sam Sproats, CEO and executive director of Fortius Funds Management, said the deal showed there were value-enhancement oppportunities in urban retail assets located at premium sites.
“Central Park Retail is at the centerpiece of one of Sydney’s most iconic mixed-use urban regeneration projects of recent times. Strategically located in a trade area undergoing rapid gentrification and redevelopment, it supports a diverse and growing demographic with retail expenditure projected to increase by 4.2 percent per annum,” Sproats said in the statement.
Suchad Chiaranussati, chairman and founder of SC Capital Partners Group, added the deal was in line with the firm’s strategy of acquiring well-located, income-generating assets with the potential for long-term enhancements.