CSC to sell half of $1.5b Indooroopilly mall

The super fund owns the entirety of the massive mall, after acquiring an initial interest in 1988 and moving progressively to full ownership in 2006.

“The successful completion of the centre’s major redevelopment and strong value growth has resulted in Indooroopilly now representing a significantly increased proportion of our client’s portfolio, and this is expected to increase with future growth,” said Quentin Shaw, Eureka Real Assets’ transactions head.

“Sale of a 50 per cent interest is therefore being pursued to achieve prudent portfolio reweighting and to allow the fund to pursue other investment opportunities.

“This approach was envisaged as part of the redevelopment of the centre.”

Strong performer

Mr Shaw said the shopping centre was a “consistently strong performer in an affluent demographic” where the average per capita income was 26 per cent above the Brisbane average.

“Super regional shopping centres are also rarely traded, and the sale of such a strong long-term income generating landmark asset such as Indooroopilly is expected to attract considerable interest from large domestic and global property investors,” he said.

Indooroopilly was built in 1971 and after a series of expansions now has 115,000 square metres of retail space.

It is anchored by Myer, David Jones, Kmart, Target, Coles and Woolworths. It also has a 16-screen cinema, 14 mini-majors and more than 350 specialty shops.

Mall deals are rare in the Australian market.