Investors turn to real estate retail investments
Investors are focusing on retail assets as an estimated US$390 million worth of shopping centers have been sold this year despite lukewarm forecasts on the sector.
One of the biggest retail assets sold for 2010 involved the sale of a 25 percent stake in Melbourne's Westfield Doncaster Shopping town by LaSalle Investment Management to the Industry Superannuation Property Trust for US$350 million.
LaSalle Investment sold the asset at 5.75 percent yield along with a 25 percent direct interest although Westfield still retains last right to acquire the 25 percent interest until mid-December.
Australian head of retail investments for Jones Lang LaSalle, Simon Rooney, told The Sydney Morning Herald that the asset is one of the country's strongest performing, largest and most up-market super-regional shopping centers, situated 15 kilometers of the Melbourne's business district.
"The center is a world-class luxury shopping destination of about 121,621 square meters and home to over 400 stores," Rooney said. "Jones Lang LaSalle believes that the greater certainty in the Australian economic outlook is resulting in the big end of town now seizing the opportunity to acquire major retail holding."
"Local real estate investment trusts have largely re-emerged as buyers due to extensive capital raising over the past two years, while many superannuation funds are also in a position to buy again because their portfolios have rebalanced and they are no longer over-weight in property," he added.
The Westfield is one of the four major deals of the year, other top sales include the DFO Portfolio for US$498 million, Lakeside Joondalup in Western Australia for US$475 million and Westfield Whitford City in Western Australia for US$256.5 million.