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Investment manager offloads Brisbane shopping centre stake for $285m

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An investment manager has sold its 75 per cent interest in a Brisbane shopping centre for $285 million.

YFG Shopping Centres has taken full ownership of Brisbane’s Mt Ommaney Shopping Centre after acquiring the remaining stake from global investment firm Nuveen Real Estate. 

YFG initially bought a 25 per cent stake in the centre from Vicinity Centres for $94.5 million last year.

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Commercial real estate services and investment firm CBRE negotiated the transaction on behalf of Nuveen. 

Simon Rooney, head of retail capital markets – Pacific at CBRE stated retail owners can still secure competitive pricing outcomes in the current market through strategic off-market transactions.

“We expect this trend to continue, as investors seek out high-quality, rarely traded retail opportunities offering attractive return parameters,” Mr Rooney said. 

He added the asset will continue to benefit from extensive population growth occurring in the region, with future redevelopment opportunities. 

So far, an application for an 11,481 sqm expansion including a cinema, dining precinct, updated bus interchange and increased parking has been approved. 

Nick Evans, real estate head of Asia Pacific at Nuveen commented: “The exit price reflects a premium to book value and is an excellent outcome for our client.”

“The disposal further illustrates our growing track record and skill sets in this highly sophisticated market in spite of ongoing headwinds for the sector,” he said.

YFG currently controls 20 shopping centres in South-East Queensland, including Australia Fair on the Gold Coast and Brookside Shopping Centre in Brisbane’s northside. 

Meanwhile Nuveen’s other retail assets in Australia include a half stake in the Greenwood Plaza in North Sydney and a 33 per cent stake in Myer Bourke Street, Melbourne. 

Nuveen reported it now holds $180 billion in assets under management globally. 

The Mt Ommaney acquisition has followed around $1.2 billion in subregional shopping centre transactions across Australia in 2019.

 

Investment manager offloads Brisbane shopping centre stake for $285m
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

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