ISPT rings up $82m of retail purchases

The industry superannuation fund-backed group’s specialist retail fund has been buying up assets.

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The unlisted ISPT Retail Australia Property Trust has finalised about $82m of deals, snapping up a shopping centre north of Perth from Woolworths development arm Fabcot and tying up a deal to take full control of a centre on the Mornington Peninsula.

The additions fit with the $2.5bn fund’s strategy to reinvest into high-quality neighbourhood centres in key geographic hubs, where non-discretionary retail continues to show resilience and long-term income ­stability.

IRAPT currently has 34 retail assets across its national portfolio, and the two purchases will add to its holdings.

It bought Woolworths Clarkson neighbourhood shopping centre for $35.75m. The 6466sq m complex is 35km north of Perth at 19 Neerabup Road, Clarkson. It is fully leased and anchored by a full-line Woolworths.

Supporting tenants include The Reject Shop, Revo Fitness, a pharmacy, kiosk, and five other specialty stores. The centre has about 300 on-grade car park spaces.

The asset was acquired after a campaign by James Wilson and Richard Cash of Colliers.

The company also bought a 50 per cent interest in Mornington Central in Victoria from the listed Vicinity Centres, which is focusing on larger assets. It paid $46.3m, a slight premium to Vicinity’s book value, giving it full control of the centre.

The neighbourhood shopping centre spans 11,474sq m, and it is anchored by a Coles and Woolworths, with 29 specialty shops, 10 kiosks, and 312 car parks.

The centre had a 12-month rolling annual turnover of $108.6m, reflecting the robust consumer demand in the area and rise of non-discretionary spending in Australia.

IRAPT fund manager Kate Mathewson said the acquisitions were part of ISPT’s approach to capital recycling, allowing it to invest more in assets that meet the needs of the communities they serve but also align with IRAPT’s long-term growth objectives.

“By focusing on assets within established hubs, like Woolworths Clarkson and Mornington Central, we continue to strengthen our portfolio with resilient, income-generating properties that are poised for sustained success,” she said.