AMP Capital in $1.06bn deal, snatches global investors
25 Oct 2012
Canada Pension Plan Investment Board and Abu Dhabi Investment Authority are among investment partners in AMP Capital's $1.06bn acquisition of Westfield’s interest in three of Australia’s best known retail assets - Macquarie Centre in Sydney, Pacific Fair on the Gold Coast and Garden City Booragoon in Perth.
AMP has attracted A$872m in new equity from the Canada Pension Plan Investment Board (CPPIB) and Harina Co., a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The new equity will be invested in the AMP Capital Retail Trust (ACRT), which has interests in Macquarie Centre and Pacific Fair.
At the same time, WDC and WRT have acquired AMP Capital managed funds’ interests in four centres - Garden City Mt Gravatt in Brisbane, a part interest in Warringah Mall in Sydney and Knox and Casey Central in Melbourne - for A$710m. AMP Capital managed funds are a A$315m net buyer of assets and following the simplification of its partnerships with WDC and WRT, the number of co-owned shopping centres is reduced from 10 to four.
AMP Capital managed funds will also invest A$970m on the redevelopment of Macquarie Centre and Pacific Fair. The redevelopment of Macquarie Centre will begin immediately and plans for the redevelopment of Pacific Fair are being finalised. The redevelopments will create premier retail and leisure destinations, positioning both assets in the top 10 of Australian leading regional shopping centres. Planning is also underway for a proposed redevelopment at Garden City Booragoon.
AMP CEO Craig Dunn said the support from existing and new investors for the transaction is an endorsement of AMP Capital’s property investment capability as well as a vote of confidence in the Australian retail sector.
AMP Capital will continue to manage the centres now wholly owned by AMP Capital managed funds. WDC will now manage Warringah Mall in which AMP Capital managed funds own a 50% interest. This aligns with the existing management arrangements in place at Southland, Tea Tree Plaza/Plus and Liverpool where AMP Capital managed funds own a 50% interest and WDC is the manager.
The transaction provides the opportunity to achieve enhanced investment returns following the redevelopment of Macquarie Centre and Pacific Fair into world class shopping and leisure destinations.
CPPIB Senior Vice-President Real Estate Investments Graeme Eadie said: “The addition of these two assets expands our retail portfolio in Australia and represents a rare opportunity to acquire interests in two high quality and well located retail shopping centres with excellent future expansion and growth potential.”
Author: Richard Newell