King & Wood Mallesons and Holding Redlich have advised on Australia's largest property transaction of the year so far.
King & Wood Mallesons acted for CFS Retail Property Trust on the deal, which involved the sale of a 50 per cent stake in Brisbane’s Myer Centre.
Holding Redlich represented ISPT and the Colonial legal team represented the property manager.
CFS Retail Property Trust is a retail-specific Australian Real Estate Investment Trust of 29 retail assets worth $8.7 billion.
Under the deal, ISPT acquired the half interest for $366m, reflecting a capitalisation rate of 6.5 per cent. CFS Retail Property Trust will 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 $150 million of its units.
King & Wood Mallesons advised CFS Retail Property Trust in relation to the sale of the half interest and co-ownership arrangements. It is the first major joint venture between ISPT and CFS Retail Property Trust. The CFS Retail Property Trust will retain a 50 per cent stake in the centre and Colonial’s property management arm will continue to manage the centre.
The King & Wood Mallesons team was led by real estate partner Andrew Erikson, who was supported by senior associate Emily Collin.
Erikson said the deal supports the client's active capital management program.