Image via Sunshine Plaza
Hong Kong’s Link REIT has made an unsolicited offer to acquire 50 per cent stakes in three major shopping centres held within Lendlease’s $2.8 billion Australian Prime Property Fund Retail. The Australian Financial Review reported that the bid targets Sunshine Plaza, Macarthur Square and Lakeside Joondalup.
The offer is not related to the recent governance dispute involving Hostplus and Mirvac. Lendlease declined to comment, and it remains unclear whether the fund will engage.
The approach comes as retail property performance improves. The MSCI/Mercer Australia Core Wholesale Property Fund Index recorded its strongest quarterly return since 2022, supported by rising capital values. Overseas investors are also returning, with cross-border investment more than doubling year-on-year in the September quarter.
The Lendlease fund is already selling assets and recently agreed to divest Erina Fair for $895 million to meet upcoming investor withdrawals. Ratings agency S&P Global has warned the sale could reduce the fund’s scale and diversification.
A tightening pipeline of new retail developments, forecast by Colliers to fall 72 per cent over the next five years, is further increasing interest in established shopping centres. Link REIT’s proposal reflects this renewed confidence in stabilised retail assets at a time of limited supply.
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