Future Fund seals $180m Harbour Town exit

The Future Fund, which has seen its exposure in real estate increase to 7 per cent, or about $10.5 billion, from 6.3 per cent a year earlier, was also looking to sell its Lakeside Joondalup regional shopping centre in Perth, but Lendlease did not proceed with taking a first right of refusal in that deal.

The Lendlease-managed Australian Prime Property Fund Retail acquired an additional 25 per cent stake in the Harbour Town centre, bringing its holding in that asset to 50 per cent.

“Increasing APPF Retail’s existing interest in the asset is aligned with the fund’s strategy to own and manage high-quality major retail assets in dominant catchment areas,” a Lendlease spokesman said.

The 55,225-square-metre Harbour Town Gold Coast has 240 specialty tenancies and with more than $440 million in total moving annual turnover. It is also the No.1 outlet centre in Australia with the highest moving annual turnover in the country.

JLL’s Simon Rooney brokered the transaction.

“Assets that are performing well and have strong retail fundamentals are still achieving significant premiums and very strong pricing,” Mr Rooney said.

“There is a limited pool of quality outlet centres in Australia, so the opportunity to acquire a high-performing asset within this defensive sub-sector, like Harbour Town Gold Coast, is limited.”

The remaining 50 per cent of the centre is owned by the Lewis Land company.

Lendlease said the centre was well positioned to capitalise on future growth opportunities, benefiting from a growing catchment and strong local and international tourist spending.