Coles has entered into a joint venture with ISPT, which will acquire a 75 per cent interest in an initial portfolio of 19 Coles-owned shopping centres.
The initial portfolio, valued at approximately $532 million, and the transaction will deliver proceeds to Wesfarmers of approximately $400 million.
Under the arrangement, Coles will retain a 25 per cent interest in the centres and will continue to manage the centres. ISPT and Coles will also look to place further properties into the joint venture as opportunities arise and Coles will maintain development control over these properties.
Coles finance director Rob Scott said the joint venture would deliver strong benefits to both parties.
“This joint venture with ISPT means Coles has secured a long-term property partner with closely aligned commercial interests,” he said.
“By retaining property development and management rights, Coles can ensure that it has flexibility and control over both store format layouts and the in-store experience for our customers.
“The arrangement also affords Coles the opportunity to secure funding for our future store growth plans.”