GIC Real Estate, the real estate investment arm of the government of Singapore, has partnered with Australia’s CFS Retail Property Trust and the Myer family to acquire and develop the site of Myer Melbourne shopping complex for a combined investment of A$1.1 billion ($971 million;€703 million).
The consortium of investors is reportedly planning an A$500-million redevelopment of the site, which occupies two adjoining Melbourne blocks, over the next five years. The redevelopment will follow an A$276.6 million outlay. The new property will have a mix of retail and office space, with the Myer department store occupying 60 percent of the total area. As part of the agreement, Myer has agreed to a 21-year lease with four 10-year options. The revamped development will include a glass-domed cultural center to house events, environmentally friendly innovations such as water harvesting and natural light and ventilation, and the ability to incorporate additional office space into the site.
The three parties will hold equal shares of the first site, located on Bourke Street. The adjoining property on Lonsdale Street will only be owned by GIC and CFS.
CFS Retail Property Trust listed on the Australian stock exchange in 1994 and invests exclusively in the Australian retail markets. The Myer Family Company is a private investment company managing the Myer family’s assets, most notably the Myer Department store chain, Australia’s largest store brand founded by Sidney Myer in 1900.