CPPIB acquires interests in two Australian shopping malls

"The addition of these two assets expands our retail portfolio in Australia and represents a rare opportunity to acquire interests in two high quality and well located retail shopping centers with excellent future expansion and growth potential," Graeme Eadie, senior vice president for real estate investments at CPPIB, said in a release. "The properties are aligned with CPPIB's long-term investment strategy to hold core assets over a long period."

Macquarie Centre has a gross leasable area (GLA) of 98,000 square meters but this is expected to reach 134,800 square meters on completion of a A$390 million development project. Pacific Fair Shopping Centre, a 103,000-square-meter facility, is slated for a A$580 million redevelopment to be completed by 2016, two years before the Gold Coast hosts the Commonwealth Games.

These developments will be financed with capital provided by AMP Capital Retail Trust, CPPIB and Abu Dhabi Investment Authority-owned Harina Company.

CPPIB's retail portfolio in Australia includes a 50% interest in Northland Shopping Centre in Melbourne as well as a 41.6% interest in the CFSGAM Property Retail Partnership, a trust that owns eight shopping centers nationwide.

The pension plan has also made several direct investments in or alongside Australian groups. CPPIB acquired Australian toll road player Intoll Group for A$3.4 billion in 2010 and last December it partnered with Goodman Group to commit an additional $250 million to Goodman China Logistics Holding.

In February, it bought a 45% stake in a portfolio of 12 US malls from Australian shopping mall owner Westfield Group for around $1.85 billion.

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• Topics
• Australasia
• Real estate
• Real estate
• Real estate
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• CPPIB