Westfield veteran Greg Miles buys IP Generation
The investment platform made its first foray into the commercial real estate industry with the acquisition of Corio Village in Victoria from ASX-listed Vicinity in late 2019, securing a $ 100 million deal on a temporary yield of 9.4%.
The property was previously valued at $ 130 million. Throughout the pandemic, the asset has kept distributions at an average of over 9%.
In April, IP Generation bought out a second mall, Mildura Central – the last asset of a wholesale fund managed by Vicinity – for a net price of $ 78 million. Vicinity acquired the property for $ 109.75 million in 2014. A 9% cash return is expected.
“IP Generation believes the broader market has become increasingly aware of the poor valuation of some retail assets given the demonstrated resilience of non-discretionary assets throughout the pandemic, despite retail yield spreads most important in recent history, ”said Lock.
Mr. Miles left Scentre in the middle of last year. He was also appointed chairman of the board of the Essential Services Property Fund, a floating candidate from Real Asset Management, which is expected to reach the boards of ASX with a portfolio of medical and proximity properties of a value between $ 500 million and $ 1 billion.