Industry fund AustralianSuper has snapped up a $1.1 billion stake in a mall in Hawaii in the biggest direct property investment by the $80bn fund to date.
AustralianSuper acquired the 25 per cent stake in Honolulu’s Ala Moana Centre from listed American property giant General Growth Properties.
GGP will retain a 75 per cent stake in the centre.
Ala Moana is the world’s largest open-air shopping centre spanning 195,000 square metres and housing 290 retailers and a further 80 restaurants.
The property is undergoing a major expansion that will add 60,000sqm of new retail space and drastically bump up the centre’s car park.
AustralianSuper will pay around $850 million up front and will hand over the remaining $250m when the development is complete.
The deal was orchestrated by Queensland Investment Corporation which holds a $1bn-plus mandate for US investments on behalf of the fund.
This article was first published on The Australian Business Review.