GIC and Vicinity Centres have entered into an agreement to exchange a 49% stake in Vicinity’s Chatswood Chase Sydney worth $562.3 million, for a 50% stake in GIC’s Queen Victoria Building, The Galeries and The Strand Arcade, worth $556 million.
Vicinity will continue to manage Chatswood Chase Sydney and will assume property management of the Sydney CBD Centres upon settlement of the transaction.
The Sydney CBD Centres are prime assets in GIC’s Ipoh portfolio since 2003. Under Ipoh’s property management, GIC has completed several significant asset enhancements including refurbishments, re-developments and tenant re-leasing projects.
The iconic QVB, Sydney
Chatswood Chase Sydney is a premium, high-performing Major Regional shopping centre situated in one of Australia’s most affluent catchments on Sydney’s North Shore, with more than 11 million consumer visits annually. The centre is anchored by high-performing David Jones, Coles and Kmart stores and has 170 specialty stores, including a number of premium brands.
Angus McNaughton, CEO, said: “This transaction is strategically significant for Vicinity. We gain exposure to, and the management rights of, three high quality and strongly performing CBD centres in Sydney, Australia’s most populous and most visited CBD. This transaction also expands our strong relationship with GIC.”
This transaction is expected to settle in early 2018 and is subject to approvals by Sydney City Council, RailCorp and the Foreign Investment Review Board.
