Blackstone buys Sydney home retail center - report
The Blackstone Group has reportedly bought the Home HQ North Shore shopping center from Charter Hall Retail REIT for A$72.5 million ($68.35 million).
According to The Australian, this is the private equity firm's fourth major retail property acquisition in the country as it looks to capitalise on a turnaround in the once unpopular sector. Retails sales data for August show hardware stores and supplies were up 5.6%, against declines in department stores and the hard-hit apparel sector.
The Home HQ household retail center comprises 22,186 square meters and offers over 25 retail stores including Freedom, JB Hi-Fi, The Good Guys, Bay Leather Republic, Snooze, and a variety of specialty retailers.
According to the Charter Hall website, the center owned by Charter Hall Opportunity Fund No.4 is worth A$89.5 million.
Simon Rooney, head of retail investments at Jones Lang LaSalle said a record A$1.2 billion worth of home retail centers has traded over the past two years. "A-REITs continue to reduce their exposure to homemaker centers and have been substantial net sellers of approximately A$588.2 million since 2008 in order to recycle capital back into the refurbishment of their major core assets," he added.
Blackstone's other Australian retail acquisition deals include A$52 million paid for the Logan MegaCentre in Queensland and A$360 million for Melbourne's Greensborough Plaza in July, as well as the A$341 million paid for Top Ryde in Sydney last year.
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