Herbert Smith Freehills has advised LaSalle Funds Management in the sale of two major Sydney large format retail centres for $436 million to Aventus Retail Property.
The sale of the Centres, Home Hub Castle Hill, which sold for $336 million, and Home Hub Marsden Park, which sold for $100 million, represented a weighted average capitalisation rate of 5.60 per cent. The transaction is significant for the Sydney metropolitan retail market and demonstrates continued confidence in large format retailing.
The transaction was led by partner Kerry Heilbronn and consultant David Stitt in Herbert Smith Freehills’ Brisbane office. They were assisted by senior associate Anna Williams based in the Sydney office.
Mr Heilbronn said, “We have had long term involvement with these assets and are delighted to have played a role in assisting LaSalle to execute this landmark transaction. We look forward to continuing our strong relationship with LaSalle into the future.”
He went on to add, “It is exciting to see continued movement in the large format retail sector. The location and size of the transactions reflect growing activity in this market.”
Herbert Smith Freehills’ market-leading commercial real estate team have recently advised on a number of other high profile transactions, including:
- the sale of office building 50 Marcus Clarke Street, Canberra by TC Advisors Australia to Mirae Asset Financial. At the time of sale this was the largest property deal in Australia in 2017, values at A$321 million;
- advising Lendlease on the A$140 million development of the commercial office building known as 5 King in the Brisbane Showgrounds precinct in Fortitude Valley, acquired by Impact Investment Group;
- advising Growthpoint Properties Australia on the sale of an industrial property portfolio for $142.2 million to Singapore-listed Mapletree Logistics Trust.