This article is from the Australian Property Journal archive
THE AMP Capital Shopping Centre Fund, UniSuper, Cbus Property and AMP Capital have consolidated their ownership in Macquarie Centre and Pacific Fair for $758.9 million as retail investments continues its comeback.
The AMP Capital Shopping Centre Fund (ASCF) has acquired an additional 25% stake in Macquarie Centre $422.5 million, and AMP Capital, together with UniSuper and Cbus Property have purchased the remaining 20% of Pacific Fair for $336.4 million through the AMP Capital Retail Trust (ACRT).
Both stakes were acquired from the Dexus Wholesale Property Fund at their book value as at 30 June 2021.
These acquisitions comes just two months after UniSuper and Cbus Property bought major stakes in the Pacific Fair and Macquarie Centre centres for $2.2 billion in the largest retail transaction in Australian history, as well as one of the largest global retail transactions since 2018.
When the transactions settle early in the new year, ASCF and ACRT will each hold 50% of Macquarie Centre, while ACRT will wholly own Pacific Fair.
AMP Capital global head of real estate Kylie O’Connor said the latest dealings wrapped up a record year of retail transactions.
“We are continuing to deliver for our investors with investments in premium real estate assets. With these latest acquisitions in Pacific Fair and Macquarie Centre, AMP Capital’s investors will hold stakes in 14 of the most highly regarded shopping centres in Australia and New Zealand.
“The latest acquisitions cap off a record year of more than $3.6 billion in retail transactions, as well as the introduction of two new parties into ACRT in Cbus Property and UniSuper, which reflects the sector-leading expertise of AMP Capital’s highly regarded real estate team and the continuing strength of our platform,” O’Connor said.
The acquisitions follow the recent sale of ASCF’s interest in Warringah Mall, which was sold at a 12% premium and along with other recent divestments, will deliver about $495 million to the fund.
This latest transaction highlights the resurgence of retail investments after suffering a hit during the height of COVID-19 lockdowns.
Real Capital Analytics’ head of analytics Benjamin Martin Henry said deal volumes in the retail sector reached $3.2 billion, buttressed by the closing of Myer Melbourne’s sale to the Charter Hall Long WALE REIT and Abacus, and Casey Central Shopping Centre selling to Haben and JY Group for $225 million.
Earlier this month SCA Property Group and the Singaporean Government’s GIC established a new $750 million retail joint venture.
Other recent major deals include Fawkner Property acquiring the Cairns Town Centre for $146 million; SCA Property Group bought the Delacombe Town Centre for $112 million; GPT selling Wollongong Central to Haben and its Hong Kong-based backer JY Group for $402 million, JY Group also bought a 50% interest in Roselands Shopping Centre in Sydney’s south-west for $167 million.
Cbus Property’s CEO Adrian Pozzo said the further investment into Pacific Fair with UniSuper and AMP Capital reinforces its conviction in the underlying performance of the centre and the potential for future growth.
“Securing 100% ownership of Pacific Fair alongside our partners will provide UniSuper members with an increased exposure to the benefits of the reopening of economies as travel restrictions ease. Over the longer term, we look forward to investing into growth opportunities that arise from this iconic centre alongside our aligned partners,” UniSuper’s head of property and infrastructure, Kent Robbins said.
