Bids sharpen for Garden City mega deal
Momentum is building towards what could become the country’s largest single shopping centre deal as bids are sharpened for the $1.2 billion Garden City mall in Perth.
The mall is held in the $5 billion AMP Capital Diversified Property Fund. Its fund manager has been working through options for the super-regional mall at Booragoon south of the CBD, from bringing in an investment partner as a joint owner ahead of a redevelopment, all the way through to a complete exit.
It is understood a shortlist of potential buyers has been put together including local and offshore players, with bids expected to come in north of $1 billion.
A full sale would eclipse the $800 million-plus acquisition of a half-stake in Indooroopilly mall in Queensland two years ago through two AMP Capital-run funds.
JLL and Colliers International were brought in three months ago by AMP Capital to run a process for potential buyers.
One interested party for the mega-mall is the country’s largest shopping centre landlord, Scentre, which owns and manages Westfield shopping centres.
Scentre holds the development rights to Garden City as the result of a carve-up of retail property assets around the country between AMP Capital and Westfield some years ago.
Those rights lapse in a few years. The mall has the potential for a $750 million redevelopment that would expand its retail footprint from 72,000 square metres to 120,000 square metres. Development plans have been approved.
The proposed divestment comes amid intense interest on values in a sector that has come under pressure from weaker consumer sentiment and the structural challenge of e-commerce.
Also nearing the end game is the sale of a $700 million half stake in Adelaide’s biggest mall, Westfield Marion, by Lendlease’s investment arm. Singapore Press Holdings is a strong contender for the stake.
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