Retail landlord Mirvac has sold half its stake in Kawana Shoppingworld on the Sunshine Coast in Queensland to property firm ISPT.

The total consideration for the 50 per cent interest of the asset is $186 million, based on a capitalisation rate of 5.50 per cent.

Mirvac and ISPT have entered into a fund-through agreement for the development of Stage 5B, which includes the delivery of an Event cinema and expanded dining precinct, and is expected to complete in late 2018.

“We are very pleased to grow our relationship with ISPT with this transaction, which is in line with our capital partnering and retail strategy,” said Susan Lloyd-Hurwitz, CEO and managing director of Mirvac.

ISPT also holds 50 per cent interest in Mirvac’s office asset at Riverside Quay in Melbourne.

“This transaction allows us to redirect capital into our high-quality retail portfolio, following our increased ownership in East Village and South Village in Sydney, as well as our retail development pipeline.”

Mirvac will retain property management, leasing and development management services.

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