This article is from the Australian Property Journal archive
YFG Shopping Centres has quickly taken full ownership of Brisbane’s Mt Ommaney sub regional shopping centre, acquiring the remaining 75% interest from Nuveen Real Estate for $285 million after picking up an initial stake late last year.
The Fu family owned and operated group had bought a 25% share from listed landlord Vicinity Centres in November for $94.5 million. It controls 20 shopping centres in south-east Queensland, including Australia Fair on the Gold Coast and Brookside Shopping Centre in Brisbane’s north.
The centre is one of the few major retail assets to change hands during the COVID-19 pandemic. Vicinity had sold its portion as part of an ongoing initiative to sell down non core assets in a difficult shopping environment that has been battered further by the outbreak.
Mt Ommaney has a total gross lettable area of 56,469 sqm, over 20,000 sqm larger than the next most significant retail centre, and has received approval for an 11,481 sqm expansion that includes a state-of-the-art cinema, casual dining and entertainment offering, as well as an upgraded bus interchange and increased parking.
The centre is anchored by a triple supermarket offering of Coles, Woolworths and ALDI, together with a triple discount department store line up of Kmart, Big W and Target.
“Strategic, off market transactions such as this, reinforce the ability for retail owners to secure competitive pricing outcomes in the current market,” CBRE selling agent Simon Rooney said.
He said the asset will continue to benefit from the extensive population growth occurring in the region and provided significant future redevelopment opportunities.
YFG’s acquisition of the initial stake, also negotiated by CBRE, came in at 3.3% above book value. Mt Ommaney last traded as a whole in 2014 in a $416.25 million deal. Vicinity forerunner Federation Centres took a 25% share and management rights while TIAA Henderson Real Estate – now known as Nuveen – bought 75%.
On the buy side, Nuveen Real Estate is one of the largest investment managers in the world, with $180 billion of assets under management globally. Nick Evans, head of Asia Pacific, said the exit price reflects a premium to book value.
“The disposal further illustrates our growing track record and skillsets in this highly sophisticated market in spite of ongoing headwinds for the sector,” Evans said.
Nuveen Real Estate’s other retail assets in Australia include a half stake in the Greenwood Plaza in North Sydney and a 33% in Myer Bourke St in Melbourne.
About $1.2 billion in sub-regional shopping centre transactions took place across Australia in 2019.
