Coles and ISPT in property venture

Written By Unknown on Rabu, 01 Mei 2013 | 16.57

PROPERTY fund manager ISPT will acquire a 75 per cent interest in an initial portfolio of 19 Coles-owned shopping centres under a joint venture deal with the Wesfarmers-owned supermarket group.

The initial portfolio is valued at $532 million and the transaction will deliver proceeds to Wesfarmers of about $400 million.

ISPT is one of Australia's largest unlisted property management funds and has more than $8 billion of funds under management.

Under the arrangement, Coles will retain a 25 per cent interest in the centres and will continue to manage them.

ISPT and Coles will look at placing further properties into the joint venture as opportunities arise and that Coles will maintain development control over those properties.

Coles finance director Rob Scott said the joint venture would deliver strong benefits to both parties.

"This joint venture with ISPT means Coles has secured a long-term property partner with closely aligned commercial interests," Mr Scott said in a statement on Wednesday.


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