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Stockland (ASX:SGP) has sold a 50 per cent stake in Sydney’s Piccadilly Centre to Investa Office Fund (ASX:IOF) for $194.25 million.
The asset includes a 32-story office tower, court and two-storey retail shopping centre with exposure to Pitt Street and Castlereagh Street.
Stockland says the sale enables the company to use capital partnering to improve its risk-return profile and recycle and redirect capital to new, accretive opportunities.
The property developer will retain a 50 per cent stake in the complex and also work with Investa in a similar arrangement with the Glasshouse Retail Centre, fronting Pitt Street Mall.
Shares in Stockland rose 0.51 per cent following Friday’s announcement while shares in Investa Office Fund closed the week flat.
Stockland reported a net profit of $298 million in the first half of the 2014 financial year.
