This article is from the Australian Property Journal archive
AMP Shopping Centre Fund has teamed for the first time with TOWER Asset Management to make its debut purchase in New Zealand.
Yesterday, the fund paid $100 million for a 50% stake in the Bayfair Shopping Centre in Tauranga, NZ. The transaction is the fund’s first overseas acquisition.
AMP Shopping Centre Fund’s fund manager Conrad Sinclair said the property which has a net lettable area of 31,000 sqm, has a proven track record and represents outstanding value.
Bayfair Shopping Centre is located two-and-a-half hours southeast of Auckland in the North Island’s Bay of Plenty. The property is among the most successful shopping centre assets in the region and includes high-quality retail tenants such as Woolworths, Kmart, Countdown and Whitcoulls.
“This purchase further diversifies the fund’s exposure to established, strong performing retail assets,” Sinclair said. “Bayfair Shopping Centre is a high quality asset located in an area with strong population growth and tourist volumes, making it an ideal strategic fit for the AMP Shopping Centre Fund.”
“This is the first time we have teamed up with TOWER. We are very pleased that both parties share a common view on the future of the property. The Bayfair asset has major development potential and both parties see significant scope for expansion over the medium term,” he added.
The deal is subject to approval from New Zealand’s Overseas Investment Office and will see AMP Capital Shopping Centres assume the role of property manager for the new joint venture.
This is the second purchase in a week for the fund, which last Friday bought the Ocean Keys Shopping Centre in Western Australia for $78 million.
The AMP Shopping Centre Fund has $1.4 billion in assets under management and comprises seven properties including a 25% stake in one of Australia’s largest shopping centres, Warringah Mall.
In total, AMP Capital Shopping Centres asset or property manages 39 shopping centres across Australia and New Zealand. In New Zealand, these properties include Botany Shopping Centre, LynnMall and Manukau Supa Centre.
By Adam Parsons
