Singapore's GIC is believed to have submitted an attractive proposal to acquire Scentre’s $1 billion-plus New Zealand portfolio, but it remains to be seen whether the company will take the offer or pursue a float of the assets.
Scentre, which owns the Australian and New Zealand shopping malls that were spun out of Westfield this year, is also widely believed to be contemplating spinning off the assets into a new vehicle that will be listed on either the NZ stock exchange or the Australian bourse. There is much speculation on the NZ portfolio with Scentre also tipped to have sounded out UBS and JPMorgan on a potential float.
However, sources said any moves could be scuttled by an offer from GIC for the portfolio.
GIC is believed to have developed a liking for Kiwi commercial property in recent months. It is understood to have bid for Dexus’s Lumley Centre in Auckland, which was sold to German pension fund Deka for $NZ146 million ($130m).
GIC is also believed to have bid for AMP’s $NZ1bn New Zealand portfolio, which included office and retail properties, but was outpaced to the asset by Canada’s Public Sector Pension Investment Board.
The Singapore sovereign wealth fund has considerable real estate holdings in Australia, including Sydney’s Chifley Tower and Queen Victoria Building, and a half-share in Melbourne Emporium, which is worth $500m. This year it sold its 8 per cent stake GPT Group for $505m.
Scentre is also rumoured to have considered holding on to the properties as debate within the company continues over whether to sell assets to reduce its gearing level of 37 per cent.
Scentre and GIC declined to comment.