Retail landlord, GPT Group, has purchased a 25 per cent stake in the Highpoint Shopping Centre and Maribyrnong Homemaker centre in Melbourne from Highpoint Property Group for $680m.

The GPT Wholesale Shopping Centre Fund (GWSCF) has exercised its pre-emptive right to purchase the 25 per cent stake, with the acquisition price reflecting a 10 per cent premium to the Fund’s 30 June 2017 book value.

The purchase takes GWSCF’s ownership in the asset to 83.33 per cent while The GPT Group (GPT) retains a 16.67 per cent interest, with GPT continueing to be the manager of the Highpoint Shopping Centre.

Highpoint has an annual moving turnover of almost $1 billion and around 470 stores including Myer, David Jones and international retailers such as Apple, Zara and Samsung.

“Securing this additional interest in Highpoint is a great outcome for the Fund and another important step in delivering on the fund strategy following the successful sale of Westfield Woden in December 2016,” said Brett Williams,GWSCF fund manager.

“Highpoint has delivered an exceptional return of 15.1 per cent over the past 12 months. Super prime regional centres of this calibre are rarely traded in Australia. Not only does Highpoint rank in the top five centres in Australia with regards to total centre sales, it is located within an exceptional catchment with over 1.3 million people.”

Williams also said Highpoint presents several immediate asset enhancement opportunities including the expansion of the cinema and entertainment precinct, introduction of additional international retailers, and the development of a second supermarket and fresh food precinct.

“The centre should also benefit from mixed use development opportunities in the future,” Mr he said.

Settlement is scheduled to occur in late September 2017.

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