GIC and Vicinity agreed on Nov 6 to swap stakes in Australian retail assets. Vicinity will exchange a 49% stake in its Chatswood Chase Sydney development, worth AUD 562.3 million ($587 million), for a 50% stake in three GIC properties – Queen Victoria Building, The Galeries and The Strand Arcade – worth AUD 556 million.

The transaction is slated for completion in early 2018, and is subject to approvals by Sydney City Council, RailCorp and the Foreign Investment Review Board.

Vicinity will continue to manage Chatswood Chase Sydney and will assume property management of the three buildings in Sydney’s CBD centre – QVB, The Galeries and The Strand Arcade – when the transaction is completed.

QVB, The Galeries and The Strand Arcade have been prime assets in the portfolio of GIC’s affiliate company, Ipoh, since 2003, according to GIC.

Chatswood Chase Sydney is a major regional shopping centre on Sydney’s North Shore that sees more than 11 million consumer visits per year, says Vicinity. The development, which has over 170 speciality stores, houses anchor tenants such as David Jones, Coles and Kmart.