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The AMP Capital Shopping Centre Fund (ASCF) and the AMP Capital Diversified Property Fund (ADPF) have each acquired a 25 per cent stake in Indooroopilly Shopping Centre from Eureka - Real Assets, acting on behalf of Commonwealth Superannuation Corporation (CSC), in a deal worth more than $800 million.
AMP Capital has assumed management of the super-regional centre on behalf of investors, which is located seven kilometres from the Brisbane CBD in the city's affluent inner west. Operational since 1970, the centre underwent a major redevelopment in 2014 and currently comprises a gross lettable area of 116,447 square metres.
Indooroopilly Shopping Centre represents a compelling investment opportunity for the funds' investors due to its long-term asset management and development potential underpinned by leases to seven major tenants such as Myer, David Jones, Coles and Woolworths, and 14 mini majors including H&M and Uniqlo.
The asset benefits from favourable demographics, with average household income in the centre's catchment area 22 per cent higher than the Brisbane average; good transport links; and strong trade area fundamentals including growing retail spend. Retail spend in the area is forecast to increase from $3.2 billion currently to $3.8 billion in 2021. The centre also offers long-term mixed use development opportunities including the potential to add 90,000 square metres in gross floor area.
AMP Capital Shopping Centre Fund Manager Conrad Sinclair said: "The acquisition of a stake in Indooroopilly Shopping Centre on behalf of our investors is in line with the fund's strategy of owning super-regional retail assets that dominate their trade area and with further potential for expansion. The fund's investors now have an 81 per cent exposure to regional and super-regional shopping centres. The deal follows a successful $200 million equity raising for ASCF, which was oversubscribed indicating the appeal these assets hold for investors."
AMP Capital Diversified Property Fund Manager Kylie O'Connor said: "Indooroopilly Shopping Centre is a good fit for ADPF's portfolio. It is consistent with the fund's strategic objective to hold a diversified portfolio of high-quality assets across sectors, with a higher weighting towards regional and super-regional retail assets. We also believe now is the right time to invest in south-east Queensland due to improving economic conditions and strong population growth in the state."
AMP Capital has a strong presence in south-east Queensland, with a portfolio that includes the recently-redeveloped Pacific Fair on the Gold Coast.
AMP Capital Global Head of Real Estate Carmel Hourigan said Indooroopilly Shopping Centre is in the sweet spot of what AMP Capital does well for its investors. Ms Hourigan said: "Indooroopilly Shopping Centre and its customers will also benefit from AMP Capital's high-quality and well-established retail management team, which looks after a stable of similarly high-quality assets and can bring learnings from those centres to Indooroopilly. We look forward to an ongoing relationship with CSC and Eureka - Real Assets."
About AMP Capital
AMP Capital is a specialist investment manager with A$178.9 billion in funds under management as of 30 June 2017 and more than 250 investment professionals. AMP Capital has a heritage and strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multi-asset solutions.It is a subsidiary of AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers.