Lend Lease’s funds unit is moving closer to offloading a $600 million portfolio of shopping centres, with the race for the year’s largest retail property portfolio culminating.
The sale process, handled by real estate agent JLL and investment bank Macquarie Capital, is thought to have been kicked off with CFS Retail Property Group’s unlisted fund CFSGAM Property Enhanced Retail Fund making an approach.
It may still be in the race, with the group declining to comment yesterday.
There is speculation financial services group Challenger, with a backer, remains in the mix. That group also declined to comment yesterday.
Dexus Property Group’s unlisted property fund, which has been buying up assets, has been mentioned as a bidder and has declined to comment.
It is understood Charter Hall Group missed out on the deal, which sources said is expected to go through on a yield described as “incredibly sharp”.
Other names bandied around as interested buyers included TIAA-Henderson, ISPT and QIC Real Estate, though these have mulled other opportunities.
The five centres are held in Lend Lease managed unlisted fund Real Estate Partners 3.
Lend Lease — which itself is thought to have expressed interest in the centres for one of its funds — declined to comment yesterday.