A number of Sydney’s most iconic retail destinations – The Queen Victoria Building, Strand Arcade, and The Galeries – are now half-owned by Hong Kong-based Link REIT, which purchased a 50 per cent interest in the locations for $538.2 million.

The deal, which was negotiated by CBRE, represents the largest CBD shopping centre transaction since 2017, when Vicinity Centres acquired its 50 per cent interest in the same centres.

“Assets of this scale, quality and reputation are rarely sold,” said CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney.

“These iconic centres are regarded as among the best in Australia and dominate Sydney’s core retail precinct, which is positioned for recovery following the end of lockdowns, as workers, tourists and shoppers return to the CBD.”

Link chairman Nicholas Allen said the business was excited to have found an opportune time to invest in the retail assets, which were purchased as part of its plan to diversify and improve its portfolio mix.

Link CEO George Hongchoy said a strategic partnership with Vicinity will deliver “the best retail experience to all shoppers”, as well as delivering long-term growth potential.

“Given the high occupancy rate filled with leading Australian and international brands, the portfolio is well-positioned to capture the retail rebound with the improving consumption sentiment in the country,” Hongchoy said.