The unlisted Commonwealth Property Fund has raised another $600 million or so by selling interests in three office and retail assets, as it moves closer to being wound up in June 2007.
Yesterday's moves take sales by CPF, which is managed by Colonial First State Property, to $948 million this financial year.
The divestments include a 50 per cent stake in the Indooroopilly shopping centre in Brisbane, for which it paid $300 million five years ago when Westfield sold the stake.
The total value of the shopping centre is about $600 million. CPF plans to undertake some upgrades and a re-mix of tenants before it sells its remaining 50 per cent.
CPF sold the stake to the Public Sector and Commonwealth Superannuation Schemes (PSS/CSS) for an undisclosed sum said to be close to $300 million.
The PSS/CSS are managed by Eureka Funds Management, run by Bob Kelly and Rod Cowdroy, who were former directors at CPF and worked on the original Indooroopilly deal with Westfield.
The PSS/CSS also bought a 50 per cent stake in CPF's 101 Collins Street, Melbourne, for an undisclosed sum. The whole building was valued at about $300 million in 2002. Mr Kelly said the two new 50 per cent-owned assets would be held in a closed, private fund run by Eureka on behalf of the PSS/CSS.
"This is a strategic investment for the PSS/CSS and reflects the competitive nature of the wholesale funds sector, which has been quietly building up assets while the rest of the market has been focused on the listed property trusts," Mr Kelly said.
No decision has yet been made on whether the PSS/CSS will bid for the remaining 50 per cent stakes in the office and retail assets, he said.
CPF's fund manager, Roger Parker, said the sale was part of the fund's plans to sell all its assets before June 2007.
"We still have a 20 per cent stake in Grosvenor Place before the fund closes," Mr Parker said.
Trent Alston, general manager of wholesale funds for CPF, said the divestments "reflect the manager's commitment to being an active manager of wholesale funds".
On Friday CPF sold its 50 per cent stake in 60 Margaret Street, Sydney, previously known as the Metcentre, to the Motor Trades Association of Australia Superannuation, for $179.25 million.