This article is from the Australian Property Journal archive
INSTITUTIONAL investor QIC Global Estate has launched a new US Shopping Centre Fund.
QIC’s global real estate managing director, Steve Leigh said the fund will be a core plus open-ended fund targeting direct investments in US regional shopping centres.
“QIC entered the US real estate market after a decade of substantial market analysis.
“QIC recognised that the US has a significant regional and super regional shopping center market with high quality assets that offer the opportunity to achieve favourable risk-adjusted returns,” Leigh said.
“Fund investors will have immediate exposure to an interest in a seed portfolio of US regional shopping centres, positioned for growth with low average occupancy costs plus a range of potential development projects,” he addd.
All of the seed assets, aside from The Shops at Tanforan, are held in joint venture subsidiaries of the US$9 billion diversified real estate investment Forest City Realty Trust, Inc.
As of the end of 2015, its global real estate portfolio AUM was $16.5 billion.
Leigh said the fund intends to grow by acquiring quality US regional shopping centers and retail assets that are dominant in their trade area or have the ability to achieve that market position over the long term.
“QIC will seek a strategic stake in future acquisitions through outright ownership or joint venture partnerships.
“The retail market in the United States is attractive to QIC due to the supportive fundamentals of a sound and growing economy, employment growth and positive consumer confidence,” he added.
The portfolio has an average occupancy cost of 11.2% and an average sales productivity of around US$515 per square foot, and comprises around 12 million square feet of lettable area.
Australian Property Journal
