Mirvac Group sold a 50% stake in Kawana Shoppingworld to ISPT Pty. Ltd. for A$186 million, based on a cap rate of 5.50%.
The agreement for the shopping center in Queensland, Australia, also comes with a fund-through agreement, in which the two will deliver an Event cinema and expand the dining precinct at the center. Work on the expansion is expected to be finished by late 2018.
Under the stake deal, Mirvac will continue to handle the management of the property, leases and development.
Proceeds from the divestment will be used to redirect funds into Mirvac's retail portfolio and pipeline, Mirvac CEO and Managing Director Susan Lloyd-Hurwitz said in a news release.
Mirvac commenced the sales process for the stake in Kawana Shoppingworld in April.
Located on the Sunshine Coast, Kawana Shoppingworld is a subregional shopping center with 157 retailers and gross lettable area of 38,403 square meters, as of June 30.