“This is despite strong interest from more than 50 parties in acquiring the assets, on an individual or portfolio basis.”
Adding to the uncertain economic outlook, on Friday Reserve Bank of Australia governor Philip Lowe told a parliamentary committee that a deteriorating global economy would make it hard for Australia to achieve a “soft landing”, but he would not be deterred from raising the cash rate further amid concern businesses are passing on bigger cost increases.
Money markets responded to Dr Lowe’s testimony, increasing to 61 per cent the chance of another super-sized 0.5 percentage point cash rate rise next month, up from 48 per cent before his comments on Friday.
The five south-east Queensland malls were performing strongly and would be retained, CVS Lane and CPG said. Expansion plans for three of the assets would proceed, in line with the existing strategies.
Mr Centra and Mr O’Rorke said they were pleased with the level of local and international interest received but had decided that retaining such assets, located in a high-growth region, was better given the recent market volatility.
All five assets are held in separate trusts, with multiple investors in each, which CVS Lane and CPG manage. The sales process was conducted by CBRE and JLL.
The five shopping centres are at Karalee, Palm Beach, Wilsonton, Springwood and Keperra.