German property fund invests in Canberra

A German property fund has invested $135.1 million into the Canberra Outlet Centre.

The Canberra Outlet Centre, once part of the DFO discount shopping centre empire, has been bought for $135.1 million by Armada Funds Management on behalf of Deka Immobilien, a German property fund which offers professional management of property assets for private investors.

The 44,870 sqm shopping centre is Canberra’s only outlet centre located in the heart of Fyshwick on the corner of Newcastle Street and Canberra Avenue, comprising the 20,822 sqm Factory Outlet and the 24,057 sqm Homemaker Hub.

Anchor tenants include Harris Scarfe, Freedom, JB Hi-Fi and 114 specialty shops.

The sale was facilitated through selling agent McVay Rea Estate and represents an initial yield of 6.3 percent, according to Canberra Times.

With recent rezoning approval for a supermarket use and projected growth of retail expenditure in its serviced area at 3.7 percent a year, Armada Funds Management has great confidence in its acquisition, looking to reconfigure more tenancies and achieve growth in the next three to five years.

Vendor was Goldman Sachs, which purchased this asset as part of its larger acquisition of a distressed property portfolio from Suncorp Bank in 2013.

According to Cityscope research, Deka Immobilien also owns an A-grade 20-level office building in Melbourne CBD, which it acquired in June 2009 through Deka ImmobilienGlobal GmbH and The Lumley Centre in Auckland Central, New Zealand, which it acquired in August 2014 through Deka Immobilien Investment GmbH.