PAG to buy Midland Gate shopping centre for $465 million

(Source: Midland Gate)

The Midland Gate shopping centre in Perth has attracted the interest of Hong Kong-based alternative investment firm PAG, which partnered with Australian property syndication company Fawkner Property to purchase the asset for about $465 million.

Commonwealth Bank Group Super and Vicinity Centre’s Retail Partnership, which equally own the shopping centre, have tapped CBRE’s Simon Rooney and Colliers’ Lachlan MacGillivray to sell the property amid fears that lower consumer spending may impact retailers, The Australian reported.

The shopping centre has a gross lettable area of 68,600sqm and is home to Coles, Woolworths and Aldi supermarkets and Kmart, Big W and Target discount department stores. It also houses an eight-screen Ace Cinemas complex.

According to the report, the Midland Gate shopping centre owners were expecting $650 million when they attempted to sell the property in 2019.

Elanor Investors Group made an about $530 million bid for the shopping centre, but the parties failed to secure a deal.

Earlier this year, PAG acquired a Sydney office block from Delux for about $393 million and the Australian Venue Co pub operation from KKR for $1.4 billion.

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