AMP, Unisuper and Cbus in major retail property play

AMP Capital has entered into partnership with two of Australia’s largest industry fund entities to take majority of one of Australia’s iconic shopping complex properties.

The transaction is occurring ahead of AMP’s demerger moves.

The company announced the AMP Capital Retail Trust (ACRT) had joined with UniSuper and Cbus Property to take majority ownership of Pacific Fair in Queensland and 50% ownership of Macquarie Centre in New South Wales.

The announcement said the $2.2 billion investment reflected the new partners’ positive outlook and momentum in the retail sector, and in particular, the quality of ACRT’s underlying assets, with both shopping centres successfully managed and developed by AMP Capital for more than 30 years.

AMP Capital are invested alongside the new unitholders to ensure management alignment.

Commenting on the arrangement, AMP Capital’s Head of Real Estate, Kylie O’Connor, said: “We are delighted to be working with UniSuper and Cbus Property as manager of these incredible assets. Since 2012, AMP Capital has overseen the redevelopment of the assets on behalf of investors to enhance the retail offering and trade area dominance of Pacific Fair and Macquarie Centre.

“As we move closer to operating under the demerged Private Markets business, we look forward to working with our partners to unlock future opportunities at each asset, both of which are in prime locations within exceptional trade areas. This includes further strengthening performance with innovative retail solutions and capitalising on their mixed-use potential, including Macquarie Centre’s mixed-use DA.”

“This deal demonstrates the returning confidence investors have in the retail sector, particularly for high-quality, well-managed assets, and the support for our highly regarded and talented management platform,” O’Connor said.

UniSuper’s Head of Property and Infrastructure, Kent Robbins, said: “UniSuper is pleased to announce its latest investment into quality retail assets. We anticipate an increase in returns from certain shopping centres as retailers seek exposure to dominant shopping centres, such as Macquarie Centre and Pacific Fair, to leverage their omni-channel retail plans.

“We look forward to our partnership with Cbus Property and AMP Capital to maximise the potential of the assets, including the mixed-use development opportunities for both centres, to deliver greater retirement outcomes for our members,” Mr Robbins said.

Cbus Property’s Chief Executive Officer, Adrian Pozzo, said: “We are excited to partner with UniSuper and AMP Capital on these premium flagship retail assets located in prime locations, with potential for future growth opportunities in both centres.