MELBOURNE, AUSTRALIA-CFS Retail Property Trust, an affiliate of Sydney-based Colonial First State Property Retail, has agreed to buy four retail outlet centers for $498 million. Austexx Proprietary Ltd.’s Direct Factory Outlet is unloading the centers.

The centers include DFO Homebush in New South Wales; DFO Essendon and Homemaker Hub in Essendon, Victoria; DFO Moorabbin in Moorabbin, Victoria and DFO South Wharf and Homemaker Hub, Melbourne, Victoria. However, the South Wharf property purchase remains conditional upon CFS’ joint venture partner, the Plenary Group, securing financing to increase its interest in South Wharf from 25% to 50%, and the execution of a non-compete agreement by Austexx officials.

As part of the acquisition, CFS will own the DFO and Homemaker Hub brand names throughout the country. After the buy, the trust’s exposure to retail outlet centers by value will be 6.6%, with 80.9% of the portfolio comprising super-regional and regional shopping centers.

Officials with CFS said that funding will be sourced through a fully underwritten $540-million institutional placement. Also, a unit purchase plan will be offered to eligible Austrialian and New Zealand unit-holders subsequent to the institutional placement.

The properties meet the trust’s criteria, such as being a strong trade center with high levels of brand recognition, strategically located and providing an opportunity to draw on the trust’s strong tenant relationships, said Michael Gorman, CFS fund manager. He said the new malls are complementary to his firm’s existing strategy and portfolio. “This is a unique opportunity to enter an increasingly important, yet immature retail format and sub-sector in Australia,” Gorman said.