ISPT Core Fund to divest five assets as part of portfolio curation strategy

ISPT has announced that following a strategic review of the ISPT Core Fund, it will commence the sale process for four retail assets and one Sydney CBD office building.

The Fund’s portfolio curation strategy will see the five assets put up for sale having been identified as not aligning with the desired scale or sector allocation goals of the Fund.

The four retail centres – Melbourne’s GPO, The Strand Melbourne, Halls Head Central WA and Eastgate Bondi Junction – are attractive to investors due to historical strong performance. The office asset, 270 Pitt Street, is a unique re-positioning opportunity in Sydney’s CBD.

Agents have been appointed to oversee the sales campaigns, which will commence this week.

The proceeds generated from these disposals will be predominantly reinvested into the Fund’s existing development pipeline in the high conviction sectors of industrial and health and life sciences.

“ISPT’s Core Fund has a strong track record and an almost 30-year history of delivering outperformance for our investors,” said Matthew Brown, Head of Funds Management, ISPT. “The real estate landscape is rapidly evolving, and by divesting tactical assets and re-calibrating our existing sector exposures to create a diversified portfolio we can optimise returns for our investors.”

“We are pleased to bring these properties to market and are expecting positive investor interest” he continued.

The $17.7 billion Core Fund is invested in over 80 property assets across various sectors, including retail, office, industrial, education, health and life sciences, and is Australia’s largest wholesale property fund.

Further details on the assets being divested are as follows:

Melbourne’s GPO

• Home to Australia’s largest H&M flagship store, secured on a renewed 10-year lease through to March 2034
• Occupies a high-profile 3,856sqm leasehold site
• Situated on the busy intersection of Bourke Street Mall and Elizabeth Street, with over 38,000 daily pedestrians
• Agents: Simon Rooney and James Douglas from CBRE, and Lachlan MacGillivray from Colliers

The Strand, Melbourne

• Occupies two prime corners within one of Australia’s most prominent CBD retail precincts, surrounded by the city’s most iconic laneways and arcades
• One of the most well-connected and highly exposed retail sites in Melbourne with direct access to Emporium Melbourne and the GPO
• High-profile tenants include some of Australia’s leading fashion and lifestyle retailers providing significant destinational appeal
• Two-level parking facility for 173 vehicles, a unique offering within the Melbourne CBD
• Agents Simon Rooney and James Douglas from CBRE, and Lachlan MacGillivray from Colliers

Eastgate Bondi Junction, Sydney

• First time offered in 30 years
• A dominant and convenience focused sub-regional shopping centre
• Excellent location in Sydney’s Eastern Suburbs
• 15,000sqm GLA
• Parking facility for 887 vehicles
• Anchored by national retail giants, Coles, ALDI, Kmart, and Dan Murphy’s
• Centre Moving Annual Turnover (MAT) 56% above Urbis averages with specialty sales productivity of $12,512 per square metre (psm)
• Agents: Nick Willis, Sam Hatcher and Kate Low from JLL, and Justin Dowers, Carl Molony and Philip Gartland from Stonebridge

Halls Head Central, WA

• Dominant convenience-based centre located 76kms south-west of the Perth CBD
• Retail mix comprises a Kmart, Coles, ALDI and circa 46 specialty shops with a GLA of 19,540 sqm
• The centre trades strongly with specialty sales productivity well over $9,000psm
• Agents: Simon Rooney and James Douglas from CBRE

270 Pitt Street, Sydney

• First time offered in over 20 years
• Major DA approved repositioning opportunity / Brown to green strategy
• Centrally located in Sydney’s CBD
• 100% freehold interest
• 22,662 sqm NLA / 48 car spaces
• Adjacent to the new metro station scheduled to open Q1 2024
• Highly efficient side core floors of c. 950 sqm, which are easily sub dividable
• Agents: Flint Davidson, James Parry and Michael Andrews from CBRE, and Ben Schubert, Paul Roberts and Jonathan Vaughan from Knight Frank

For further information please contact:

Nicole Grove
General Manager, Communications
E: ngrove@ispt.com.au
M: 0427 916 166

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