SINGAPORE (AFP) – Singapore sovereign wealth fund GIC will acquire a 49 per cent stake in five shopping malls in New Zealand for NZ$1.04 billion ($798 million), its joint-venture partner said.
Scentre Group, New Zealand’s largest shopping centre operator, said in a statement that it “will receive proceeds” of about NZ$1.04 billion from the deal.
GIC said in a separate statement the new partnership will provide it with a “stable revenue” stream but did not give the value of its investment.
The firm said, “GIC is acquiring a high-quality portfolio of regional shopping centres… They are well positioned to capture the long-term growth of the New Zealand economy.”
Scentre Group chief executive Peter Allen said entering into joint ventures in some of its wholly owned assets is a “strategic focus” for the company, with the proceeds from the GIC deal used “into our development pipeline and the repayment of debt”.
Under the deal, GIC will own 49 per cent of five shopping malls – Westfield Albany, Westfield Manukau, Westfield Newmarket, Westfield Riccarton and Wesfield St Lukes – with a combined gross value of of NZ$2.1 billion. GIC, which manages Singapore’s foreign exchange reserves of well over $100 billion, owns prime properties worldwide as part of a long-term investment strategy.
Media reports say it is leading a consortium which is in talks to buy US warehouse operator IndCor Properties from private-equity firm Blackstone Group for $8.0 billion.