Stockland has surprised the market by swooping on the Glasshouse Shopping Centre in the Sydney CBD and nominating Investa Property Group's wholesale office fund to buy a stake in the adjacent office tower.
Industry Superannuation Property Trust had been chosen by a Colonial First State fund that is being wound up to buy the fund's half stakes in 135 King Street and the Glasshouse for about $140 million.
But Stockland exercised its pre-emptive rights as co-owner of the $280 million complex to buy the PPS fund out of the retail centre and nominated Investa for the office tower stake.
The $8.9 billion ISPT had been chosen to buy the PPS fund's stake in 135 King Street and the Glasshouse.
It is separately finalising a deal to buy Bendigo Marketplace, a sub-regional shopping centre in Victoria, for about $160 million.
JLL's retail and office teams and Colliers International handled 135 King Street and the Glasshouse.
With the PPS fund being wound up, ISPT had seen an opportunity to access retail property and a well-located office tower.
Securing the tower stake is a coup for the Investa fund.
The fund has emerged as a player this year, having bought a Brisbane CBD tower and committed to a half stake in Leighton's development in Melbourne's Collins Street.
The behind-the-scenes deal indicates a bond may emerge between Stockland and Investa.
Stockland is also selling the near $400 million Piccadilly Centre in the Sydney CBD, which may also come on to the Investa's radar.