The Newmark APN Auburn Property Fund is a 50/50 joint venture arrangement between the two groups and will be undertaking the redevelopment of a regional shopping centre to be named The Marketplace Auburn.
APN has contributed $1.3 million to the new fund and expects to earn approximately $0.8 million in upfront project initiation fees in the 2015 financial year.
APN Funds Management will be trustee for the fund.
The redeveloped centre will include major leading Australian retailers, including Woolworths, Aldi, Spotlight and Anaconda.
APN said the centre is strategically located in a fast growing area within Sydney’s west, midway between the Sydney CBD and Parramatta CBD, and is expected to deliver strong returns and growth to investors.
“The Marketplace Auburn offers over 1,000 car parks and includes around 50 specialty tenancies offering customers a very convenient shopping destination with a wide range of high quality, convenience-based offers with a focus on fresh food and non-discretionary offerings,” the real estate investment manager said.
APN said once the redevelopment is completed, the fund expects to “retain the property to provide new and existing investors an opportunity to access an attractive and sustainable property income yield with the potential for some capital growth over time”.
