GPT goes shopping for Lendlease centre contracts

The move is part of GPT’s push deeper into asset management and sees Lendlease step out of running large shopping centres as it focuses on core operations.

Macarthur Square Shopping Centre in Campbelltown.

The GPT Group is stepping up its asset management ambitions and has snapped up the management of Sunshine Plaza in Queensland and Macarthur Square in Sydney.

The company’s flagship retail property fund owns the centres alongside Lendlease’s APPF Retail fund and will take on the management from Lendlease in May.

The move is part of GPT’s ambitions of taking on more management roles and expanding in both wholesale funds and mandates. It has already overhauled its wholesale shopping centre fund and recalibrated its portfolio by taking a half stake in Rouse Hill Town Centre in Sydney.

GPT also set up a retail partnership with Perron Group by striking a deal to buy a 50 per cent stake in Cockburn Gateway and Belmont Forum, both in Perth.

Lendlease will keep its asset management capacity but have only one regional centre, Erina Fair in NSW, where its partner NPS has tried to sell off in recent years, under it wingm as well as the property management for Tweed City.

 Lendlease managing director, investment management, Vanessa Orth, flagged the move was part of a larger strategy. “Lendlease Group’s refreshed strategy has been focused on simplifying and improving the performance of our operations. Across our Australian funds management business, including industrial and office, we have a partnership model with a range of external providers for property management that has been successfully cultivated for several years,” she said.

“Moving our retail assets to this model is in line with the approach on our other assets, and part of our strategy to simplify the business and deliver performance for investors,” Ms Orth said.

Lendlease still has $14.6bn worth of retail property assets in its funds unit, including $6bn in Australia.

The two companies said in a statement that they “have a shared commitment to continuing to deliver an outstanding experience for retailers and customers and look forward to the future growth of the centres”.

Sunshine Plaza is in Maroochydore on Queensland’s Sunshine Coast. The centre has more than 320 tenancies including Myer, David Jones, three discount department stores, two supermarkets and a 12 screen Birch Carroll and Coyle cinema complex.

Sunshine Plaza underwent a $420m redevelopment ahead of the pandemic.

Macarthur Square is in Campbelltown, in Sydney’s southwestern suburbs. It has a David Jones department store, two discount department stores in Target and Big W, three supermarkets and cinemas It also houses international retailers H&M, JD Sport, Sephora and Uniqlo and multiple food precincts.

Originally published as GPT goes shopping for Lendlease centre contracts