Cuscaden Peak Seeks Buyer for Half-Stake in South Australia Mall

Singapore’s Cuscaden Peak has put its 50 percent interest in a South Australia mall on the market as the Temasek-owned investment group continues to sell down its real estate portfolio.

Market sources say the half-stake in Westfield Marion, the largest shopping centre in Adelaide, could fetch at least A$650 million ($449 million) amid rising demand for Aussie retail assets. JLL and CBRE will conduct a joint sale campaign for Cuscaden’s slice of the four-storey mall, which is co-owned and run by Sydney-based Scentre Group, according to a Tuesday announcement.

The half-share in the 138,000 square metre (1.4 million square foot) property was purchased in 2019 for a reported A$670 million by SHP REIT — the forerunner of Paragon REIT, the SGX-listed trust taken private last year by Cuscaden, a 50:50 holding firm of Temasek units Mapletree and CapitaLand. Westfield Marion is the sole remaining asset in Cuscaden’s Australia portfolio after the sale of Figtree Grove Shopping Centre in Wollongong in early 2025.

“Fortress assets of the calibre of Westfield Marion remain highly sought after,” said Simon Rooney, CBRE’s head of retail capital markets for the Pacific. “Throughout 2025 we have seen significant re-engagement from both domestic and offshore institutional capital groups on major retail assets, willing to transact at competitive pricing levels for premium retail opportunities.”

Tempting Tax Benefit

Located 13 kilometres (8 miles) southwest of central Adelaide, Westfield Marion is anchored by retailers including David Jones, Myer, Woolworths, Coles, Aldi, Kmart and Target. The mall draws 12.5 million customers a year and reports annual sales in excess of A$970 million.

In their announcement, JLL and CBRE cited benefits such as the chance to partner with an experienced operator in Scentre Group, plus Adelaide’s attractive yield spread over Sydney and Melbourne and South Australia’s lack of stamp duty on commercial property acquisitions.

“As global retail real estate experiences a significant resurgence, investors face constrained access to institutional-grade assets,” said Nick Willis, executive director for JLL’s Australia and New Zealand retail investment team. “Westfield Marion offers an exceptional opportunity enhanced by South Australia’s favourable tax structure, delivering superior risk-adjusted returns in what remains one of the most sought after and guarded asset classes.”

A transaction at A$650 million would value Westfield Marion at A$9,420 ($6,517) per square metre of gross lettable area and continue a recent string of retail deals Down Under, including last week’s sale of Erina Fair.

A Lendlease fund and South Korea’s National Pension Service sold the mall in Erina, New South Wales to Fawkner Property for A$895 million ($604 million), equating to A$7,810 ($5,275) per square metre and marking the largest-ever trade of sole ownership in an Australian shopping centre.

Melbourne-based Fawkner previously picked up Figtree Grove from Cuscaden’s Paragon REIT and MA Financial Group for A$192 million in a deal completed last January.

Portfolio Sell-Down

Mingtiandi reported last month that Chinese investor Elegant Group had agreed to purchase The Clementi Mall in western Singapore from Cuscaden for S$809 million ($624.6 million), citing sources familiar with the transaction.

The Clementi Mall was formerly part of the Paragon REIT portfolio. The trust’s other remaining assets absorbed by Cuscaden are the half-stake in Westfield Marion and the Paragon mall on Singapore’s Orchard Road. Cuscaden also owns Woodleigh Mall in north-central Singapore and the mall’s adjoining residential complex in a 50:50 joint venture with Japan’s Kajima Corp.

Cuscaden put Woodleigh Mall up for sale in July 2024 for S$800 million. Sources told Mingtiandi at the time that parties showing buying interest included local investment giants UOL Group and Frasers Property, Robert Kuok’s Allgreen Properties and Hong Kong-listed Link REIT.