Stockland is selling The Grove residential community in Melbourne to the Australian arm of Singapore-listed Frasers Property Ltd. for A$202.5 million.
The diversified real estate investment trust is expecting gross profit amounting to A$75 million from the agreement, which reflects a 59% premium to the property's book value, the company noted in a news release.
Proceeds from the transaction with Frasers Property Australia Pty Ltd. will be directed by the selling Australian REIT toward its workplace and logistics development pipeline and securities buyback program, according to Mark Steinert, CEO and managing director of Stockland.
Following the sale, Stockland's portfolio in the Australian state of Victoria will include 11 residential communities. The portfolio will comprise more than 24,000 lots, of which over 5,600 lots are situated in the western corridor of Melbourne.