Artists Impression of Expansion Potential

AMP Capital consolidate retail ownership of Mac & Pac

To cap off a series of mega deals, AMP Capital has raised capital for a further $760m investment in Macquarie & Pacific Fair Shopping Centres.

The AMP Capital Shopping Centre Fund (ASCF) has acquired an additional 25 per cent stake in Macquarie Centre in New South Wales for $422.5 million using the proceeds it secured from the recent sale of its interest in Warringah Mall.

In a second transaction, AMP Capital, together with UniSuper and Cbus Property have purchased the remaining 20 per cent of Pacific Fair in Queensland 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. Dexus held the assets as the newly appointed manager of the AMP Capital Wholesale Property Fund following investor approval to appoint Dexus. Dexus immediately sought to liquidate several assets including the stakes in Macquarie and Pacific Fair.

In October this year, AMP Capital replaced CCPIB and ADIA in the ACRT with UniSuper and CBUS in a deal worth c$2.2bn.

When the transactions settle early in the new year, ASCF and ACRT will each hold 50 per cent of Macquarie Centre, while ACRT will wholly own Pacific Fair.

Confused ? Perhaps the following graphics may assist .

Macquarie Centre

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,” Ms O’Connor said.

The acquisitions follow the recent sale of ASCF’s interest in Warringah Mall, which was sold at a 12 per cent premium and along with other recent divestments, will deliver about $495 million to the Fund.

The Macquarie and Pacific Fair transaction was brokered by JLLs Nick Willis and Sam Hatcher in conjunction with CBREs Simon Rooney.

Mr Willis Said “We have experienced a shift in investor engagement and confidence in all retail sub-sectors, however more recently in the larger regional shopping centres.

Investors have identified the resilience in the asset class in Australia versus other global markets, and the relative value these pieces of real estate offer via their mixed-use potential.  This has driven a lot of maiden capital into the sector and a record year with over $10 billion trading and the momentum carrying on into 2022 with over $7 billion in investor demand.”

Cbus Property’s Chief Executive Officer, Adrian Pozzo, said, “The further investment into Pacific Fair with UniSuper and AMP Capital reinforces our conviction in the underlying performance of the centre, the potential for future growth and the alignment with our new partners”

“Securing 100 per cent 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.

In October 2021, AMP Capital introduced two new partners in ACRT, Cbus Property, one of Australia’s leading property investors and developers, and UniSuper, one of Australia’s leading superannuation funds, via a $2.2 billion investment in Pacific Fair and Macquarie Centre. It was the largest retail transaction in Australian history, as well as one of the largest global retail transactions since 2018.

AMP Capital Shopping Centre Fund has $3.5 billion in assets as at September 2021, with 14 assets across Australia and New Zealand. The portfolio has a high weighting to regional and super regional shopping centres.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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