Diversified property group GPT has agreed to acquire stakes in two major Australian shopping centres from Lendlease’s Australian Prime Property Fund – Retail (APPF Retail) in a transaction valued at approximately A$1.2 billion. The purchases involve 50 percent interests in Sunshine Plaza on the Sunshine Coast and Macarthur Square located in Sydney’s southwest.

The deal, announced in late June, follows a February recapitalisation arrangement between APPF Retail and the superannuation fund-backed CBUS Property, which aimed to restructure a portfolio of malls valued at around A$2.4 billion. Under the current agreement, GPT Wholesale Shopping Centre Fund will jointly own Sunshine Plaza with the Lendlease fund and entirely own Macarthur Square.

Sunshine Plaza and Macarthur Square are classified as super-regional shopping centres, each encompassing approximately 107,000 square metres. They represent the largest retail destinations within their local markets. The acquisition prices—A$622 million for the Sunshine Plaza interest and A$568 million for Macarthur Square—align with independent asset valuations.

GPT will finance the acquisitions partly through proceeds from a recent oversubscribed equity raise totaling about A$610 million, supplemented by available debt facilities. Following the transaction, GPT will continue its existing role by providing leasing, property, and development management services, having taken over management responsibilities from Lendlease last year. GPT’s CEO, Russell Swigart, described the acquisitions as consistent with the company’s strategy to expand its investment management platform through collaborative partnerships.

As a result of the divestment, APPF Retail’s portfolio will be reduced to two remaining assets: 50 percent stakes in Lakeside Joondalup in Western Australia and Westfield Carindale in Queensland. CBUS Property’s involvement will also be narrowed to these holdings rather than the larger portfolio initially envisaged. Market observers noted that while the sale of Sunshine Plaza aligned with expectations, the strong valuation realized for Macarthur Square was viewed positively and is anticipated to benefit outgoing investors.

The recapitalisation and sale process was advised by JLL representatives Luke Prokuda, Mike Pyke, Nick Willis, and Sam Hatcher. Vanessa Orth, managing director of Lendlease Investment Management, commented that the firm acted promptly to provide liquidity for investors, securing a favorable outcome and increasing asset values while upholding rigorous governance standards during the transaction.

This latest deal adds to a series of major mall transactions currently occurring across Australia, with these assets trading above book values despite broader economic headwinds affecting consumer spending.