The $US77 billion ($87bn) financial services giant TIAA CREF has teamed up with Federation Centres to purchase the Mount Ommaney Centre shopping centre in Brisbane for $416.25 million.
Meanwhile, Federation Centres has also found a capital partner, “associated with one of Australia’s leading superannuation fund managers”, to purchase a 50 per cent stake in the $115.8m Brandon Park shopping centre in Melbourne’s suburb of Wheelers Hill.
And in a third deal, Federation purchased a half-stake in a neighbourhood centre on the Mornington Peninsula for $38.5m and has an option to buy the remaining 50 per cent stake, in a deal handled by CBRE’s Mark Wizel.
The Mount Ommaney deal marks the first shopping centre transaction by the American behemoth’s property investment partnership with Britain’s Henderson, TIAA Henderson Real Estate — one of the largest real estate investment managers in the world.
Under a co-ownership agreement, TIAA Henderson Real Estate would own 75 per cent of the sprawling centre and Federation 25 per cent, representing a $104.06m commitment for the entity born out of the debt-strapped Centro empire. The centre, which had attracted early interest from GPT Group, was purchased from AMP Capital.
Colliers International agent Lachlan MacGillivray handled the sale.
The sale by AMP was part of the group’s overhaul of its $4.5bn Australian Core Property Portfolio. Mount Ommaney Centre is about 14km southwest of the Brisbane CBD and has 165 specialty tenants.
The centre is anchored by three discount department stores, three supermarkets and four mini-major tenants.
“The purchase of Mount Ommaney Centre provides us with the opportunity to invest in a quality regional shopping centre in a strong demographic market in the western suburbs of Brisbane, as well as enter into a new co-ownership relationship with TH Real Estate,” said Federation Centres chief executive Steven Sewell.
TH Real Estate director Nick Evans said the group was excited to have established a new partnership with Federation.
“The investment is testament to our long-term strategy within Australia, where we are committed to building a sustainable business,” Mr Evans said.
Colliers’ Mr MacGillivray said the TIAA-Federation deal demonstrated the trend towards co-partnerships in retail investments.
TIAA-Henderson is expected to become a longer-term partner to Federation Centres.
The group already has set up an office property investment partnership with Mirvac Group that has been seeded with a development deal in Melbourne.
Mount Ommaney also marks the first acquisition by Federation of a top-tier regional shopping centre since its 2012 restructure.