King & Wood Mallesons has advised CFS Retail Property Trust on the sale of a 50 per cent stake in Brisbane’s Myer Centre, representing the largest property transaction in Australia to date in 2012.
CFS Retail Property Trust is a retail-specific Australian Real Estate Investment Trust comprising of 29 retail assets with a total asset value of $8.7 billion.
Under the deal, ISPT, one of Australia’s leading unlisted property funds, acquired the half interest for $366 million, reflecting a capitalisation rate of 6.5 per cent. CFS Retail Property Trust will use the proceeds of the sale to fund a range of capital management and investment activities, including an on-market buy-back of up to $150 million of its units.
King & Wood Mallesons advised CFS Retail Property Trust in relation to the sale of the half interest and co-ownership arrangements. It is the first major joint venture between ISPT and CFS Retail Property Trust. The CFS Retail Property Trust will retain a 50% stake in the centre and Colonial’s property management arm will continue to manage the centre.
The King & Wood Mallesons team was led by real estate partner Andrew Erikson, who was supported by senior associate Emily Collin.
Andrew said: “we are pleased to have acted for CFS Retail Property Trust on this significant deal which supports its active capital management program and delivers value to its unitholders.”
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