By a staff reporter
Former Centro Properties Group, Federation Centres Ltd (FDC), will sell 50 per cent of its interests in a property portfolio of six assets to Challenger Ltd for $602 million.
In a statement, FDC said that it will continue to manage the centres and their redevelopment programs.
The portfolio of assets includes regional shopping centres at Bankstown and Roselands in New South Wales, and the convenience centres at Toormina and Lennox, in New South Wales, Sunshine in Victoria and Karratha in Western Australia.
Federation Centres managing director Steven Sewell said FDC would continue to provide all property-related services when Challenger acquired the FDC-managed Surfers Paradise Centre in Queensland.
“It is pleasing that we have now agreed to extend our alliance to also include co-ownership of a larger group of other centres," he said.
“We look forward to working with Challenger at these quality shopping centre destinations to provide an engaging shopping experience for our consumers and enhanced returns for investors.
“Both FDC and Challenger share a common view of the potential for strategic and prudent investment to enhance these centres.”
The assets, owned by FDC and a number of Retail Direct Property syndicates, have a gross value of $1.2 billion.