Large format retail landlord Aventus Property Group is testing its investors’ faith, paying a record yield to snap up two Sydney facilities controlled by LaSalle Investment Management for $436 million.
But chief executive Darren Holland said the fast-growing property trust’s focus was on the long-term potential for redevelopment the properties would deliver.
“These are once-in-a-generation acquisitions,” he told The Australian Financial Review. “We will hold for these for a very long time.”
The retail space of Castle Hill in particular could be increased by as much as 25 per cent in the medium term, he said.
“It is a fortress-style, dominant asset. It has excellent development potential.”