CFS Retail Property Trust has sold a 50 per cent stake in Myer’s Brisbane shopping centre to a fellow property investment trust for $366 million.
Property investor ISPT bough the half share in the six-level Myer centre in Brisbane’s CBD, which was valued last November at $732 million for a 100 per cent interest, CFS said in a statement.
CFS bought the centre, which houses Myer, Target, Coles, cinemas and more than 180 retail specialty stores, for $369 million in 1988.
CFS will use surplus capital from the sale for a $150 million on-market buyback of its securities.
CFS fund manager Michael Gorman said the company may buy back more units in the next 12 months if further surplus capital became available.
“The sale of a partial interest releases capital from an asset where we have realised significant value, but allows us to retain a continuing interest to maintain the breadth of our tenant relationships and portfolio diversification,” he said.
He said the proceeds from the sale would be used in part to help fund the next redevelopment of the Chadstone Shopping Centre in Melbourne.
The company’s units closed up $1.75 per cent at $1.783