Big bucks for Gympie malls in $22 billion national merger
GYMPIE'S two major shopping centres, Gympie Central and Goldfield's Plaza, are now part of one of Australia's largest real estate investment trusts.
Federation Centres, the owners of Gympie Central and Goldfields Plaza, has merged with and Novion Property Group (previously the CFS Retail Property Trust) to create an investment trust worth more than $22 billion.
The Sydney Morning Herald reported the merged entity would have a market capitalisation of $11 billion and would be, if approved, the second-largest listed manager of Australian retail assets and a top 10 listed manager of retail assets globally.
Overall it will have $22 billion of retail assets under management across 102 retail assets with more than $18.2 billion in annual retail sales.
Federation, previously know as Centro Properties Group, has a large exposure to food-based centres and malls across the country, including two in Gympie.
They purchased the Centro Gympie shopping centre for $64 million in early 2013.
The mall was previously held by the Centro MCS 9 property investment syndicate.
Gympie Central, as it is now called, has a gross lettable area of 14,054sq m and 752 car spaces.
Big W and Woolworths are its anchor tenants.
Novion is the owner of large mixed-use malls, including Chadstone and the Emporium in Melbourne and Chatswood in Sydney.
The Herald said Novion' management took over control of the fund last year when it was CFS Retail and run by the Commonwealth Bank
Implementation of the merger requires the approval by Novion security holders of Novion schemes of arrangement.
Once the merger is complete, Federation's current chief executive Steven Sewell will run the new group, while Angus McNaughton (chief executive and managing director of Novion) and Michael Gorman (deputy CEO and chief investment officer of Novion) will step down from their current roles.