King & Wood Mallesons has advised Coles on a strategic long term alliance with ISPT pursuant to which ISPT will initially acquire a 75% interest in its 19-strong national shopping centre portfolio and the joint venture will develop and acquire additional centres.
Coles will retain property development and management rights under the alliance, as well as a 25% interest in the portfolio. Both parties will look to place further properties, over which Coles will maintain development control, into the joint venture as opportunities arise.
The KWM team structured the alliance, including joint ownership, property management and development arrangements which are expected to live for over 30 years and will see centres coming in and out of the portfolio as they are acquired, developed and sold. The team also assisted Coles in achieving the most efficient sale structure for centres currently under development.
Real Estate Partner Andrew Erikson and Senior Associate Emily Masters led the transaction. They were supported by Senior Associates Malwina Peacock and Lorelle Porter, and Solicitors Brianna Youngson, Joseph Ip, Kimberley Lewis and Yolanda Karantgis.
“We are pleased to have assisted Coles in completing its search for a long-term partner to unlock capital from its current investments and support its developments going forward. The deal gives Coles flexibility and control over the development the centres, including store format layouts and the in-store experience for customers”, Andrew Erikson said.
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