The billionaire Besen family has offloaded a quarter stake in one of Australia's largest malls, the Highpoint Shopping Centre in Melbourne's west, for $680 million.
The sale of its share in the lucrative shopping mall to diversified property giant GPT will significantly boost the family's wealth, estimated by the BRW Rich List to be about $2.4 billion.
![Marc and Eva Besen founded clothing retailer Sussan Group.](http://web.archive.org./web/20170802183332im_/https://www.fairfaxstatic.com.au/content/dam/images/g/t/t/9/b/9/image.related.articleLeadwide.620x349.gxm2y6.png/1501494116824.jpg)
The family, headed by patriarch Marc Besen, decided to sell its 25 per cent holding in the mall and the neighbouring Maribyrnong Homemaker centre in April.
GPT's Wholesale Shopping Centre Fund picked up the Besen's share after taking up a "pre-emptive" purchase option.
![GPT and its wholesale shopping centre fund now fully own Highpoint.](http://web.archive.org./web/20170802183332im_/https://www.fairfaxstatic.com.au/content/dam/images/g/r/4/o/m/u/image.related.articleLeadwide.620x349.gxm2y6.png/1501494116824.jpg)
"Highpoint has delivered an exceptional return of 15.1 per cent over the past 12 months. Super prime regional centres of this calibre are rarely traded in Australia," the fund's manager, Brett Williams, said.
GPT and its managed fund already owned 75 per cent of the centre after acquiring a half share in 2006 and further boosting its ownership in 2009 and 2014.
The price reflected a 10 per cent premium to the fund's June 30 book value, GPT said.
The Besen family, who controlled their share through the Highpoint Property Group, would not comment on the deal.
![Highpoint has about 470 stores, including Myer, David Jones and international retailers Apple, Zara and Samsung.](http://web.archive.org./web/20170802183332im_/https://www.fairfaxstatic.com.au/content/dam/images/g/t/9/c/x/p/image.related.articleLeadwide.620x349.gxm2y6.png/1501494116824.jpg)
The sale will give GPT and its wholesale fund full control of Highpoint, which is one of the country's largest super regional shopping centres and has an annual moving turnover close to $1 billion.
The fund has ended up with a controlling 83.33 per cent stake in the centre, while the remaining 16.67 per cent interest is held by GPT Group.
Highpoint, in Melbourne's rapidly gentrifying western suburbs, has about 470 stores, including Myer, David Jones and international retailers Apple, Zara and Samsung.
GPT continues to be the centre's manager.
GPT is currently considering expanding the centre's cinema and entertainment areas and developing a second supermarket and fresh food precinct.
"The centre should also benefit from mixed-use development opportunities in the future," Mr Williams said.
Marc and Eva Besen founded clothing retailer Sussan Group, now controlled by their daughter, businesswoman and philanthropist Naomi Milgrom.
Eva Besen is the sister of property billionaire John Gandel, best known for his ownership of Melbourne's other mega-mall, Chadstone Shopping Centre.
Ratings agency S&P; Global Ratings revised its outlook for GPT's fund from stable to negative following the deal with the Besens.
"In our view, the Highpoint acquisition increases the fund's exposure to a single asset that could weaken its ability to weather potential future headwinds in the center's trade catchment area," the agency said.
Rival property group Dexus released a report this week suggesting weak wages growth will continue to impact on retail sales.
Shopping centres are facing strong competition from international and online retailers which now account for 7.3 per cent of total sales in Australia.
Centre owners have responded to the threat by increasing their food, leisure and entertainment spaces.
But that, too, is not without problems.
Sumo Salad founder Luke Baylis recently put two companies controlling leasing agreements in Westfield Shopping Centres in administration because of concerns about leasing rates.
Sumo Salad said the change in strategy at big malls had resulted in an over saturation of food options putting pressure on franchisees' margins.
Amazon's imminent arrival and its potential to eat into market share has also resulted in retail landlords being sold down on the stock exchange this year.