GPT fund buys 25pc of Highpoint for $680m

GPT has snapped up the 25pc of the Highpoint shopping centre it doesn’t already own for $680m from the Besen family.

Highpoint shopping centre in Melbourne.

GPT has snapped up the 25 per cent of Highpoint Shopping Centre it does not already own for $680 million from richlisters the Besen family.

The GPT Wholesale Shopping Centre Fund took up its pre-emptive right to buy the stake after the family flagged selling the stake in April.

The deal was struck at a 10 per cent premium to the fund’s June 30 book value.

The fund now owns 83.33 per cent of the shopping centre at Maribyrnong in Melbourne’s northwest and the GPT Group itself owns 16.67 per cent.

Marc Besen developed the shopping centre in 1980, well before the family sold a 50 per cent stake to GPT Group in 2006 for $620m, and made a further sale in 2009.

Fund manager Brett Williams said the purchase was an important step in delivering on the fund’s strategy after the mall returned a standout 15.1 per cent over the past 12 months.

“Super prime regional centres of this calibre are rarely traded in Australia,” Mr Williams said.

“Highpoint also presents several immediate asset enhancement opportunities including the expansion of the cinema and entertainment precinct, introduction of additional international retailers, and the development of a second supermarket and fresh food precinct.

“The centre should also benefit from mixed use development opportunities in the future.”

The mall has around 470 stores including department stores Myer and David Jones and international retailers Apple, Samsung and Zara.

Settlement is scheduled for late September.

The deal comes amid a focus on the health of the retail property sector in Australia as wages growth remains weak and Amazon prepares to roll out its full retail offer locally.