CFS Retail Property Trust, advised by King & Wood Mallesons, has sold its 50 percent stake in Brisbane’s Myer Centre to ISPT. The deal is being touted by lawyers as the largest property transaction in Australia this year to date. ISPT, an unlisted property fund, was advised by Holding Redlich on the acquisition of the 50 percent interest in the shopping centre for A$366 million. This reflects a capitalisation rate of 6.5 percent. 

The team from King & Wood Mallesons was led by partner Andrew Erikson, who had support from senior associate Emily Collin. Partners Helen Scott and Michael Byrom led the team from Holding Redlich (advising ISPT). The in-house legal team from Colonial’s property management arm also advised. Colonial will continue to manage the centre under the terms of the deal. 

ISPT chief executive Daryl Browning told the Courier Mail that the purchase is consistent with a strategy of expanding higher quality regional and sub-regional retail exposure. He also pointed to the strength of the Brisbane market, and the Queen Street Mall in particular. "We think that the Mall in Brisbane is one of the strongest in Australia and the Brisbane CBD is a very strong market and hence has attracted our capital investment," he said.

King & Wood Mallesons also advised real estate investment trust Stockland on the sale of its 55 percent stake in the Moorebank Industrial Property Trust (MIPT) to Qube Logistics, one of the MIPT joint venture partners, for A$123 million earlier this month. That transaction was led by M&A partner John Sullivan.

Holding Redlich has a longstanding relationship with its client, ISPT, having acted as adviser to the property fund for the last 15 years on its transactions.

The transaction is the first major joint venture between ISPT and CFS Retail Property Trust.  The CFS Retail Property Trust will retain a further 50 percent stake in the centre. It also announced it plans to use the proceeds of the sale to fund a range of capital management and investment activities, including an on-market buy-back of up to A$150 million worth of its units. 

Erikson commented that the deal will provide value to the unit holders.