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AMP Capital today announced it has introduced Scentre Group as a joint venture partner in Garden City Shopping Centre, by selling a 50 per cent interest for $575 million on behalf of investors in the AMP Capital Diversified Property Fund (ADPF). The sale reflects a 3.6 per cent premium to the asset’s most recent valuation which was based on a capitalisation rate of 4.75 per cent. ADPF will continue to hold the remaining 50 per cent in the asset.
Just 15 minutes south of Perth’s CBD, Garden City Shopping Centre is located in the suburb of Booragoon. Garden City was ranked most productive shopping centre for speciality turnover per square metre in Western Australia and ranked fourth nationally in the 2018 Shopping Centre News Big Guns report. The 72,843 square metre centre features six majors, eight mini majors and more than 160 specialty stores.
AMP Capital Diversified Property Fund Manager Brett Williams said that this outcome followed an extensive sale process with a number of domestic and international investors.
“I’m pleased to announce that Scentre Group will become a joint owner alongside the investors in ADPF by taking a stake in one of the best major regional shopping centres in Australia.
“This is an excellent outcome for our investors. Encouraged by recent investor appetite in high-quality shopping centres, our strategy was to introduce a joint venture partner to reduce asset concentration and provide further diversification for our investors.
“It also benefits our retailers and shoppers in Western Australia as this partnership will allow for further investment in this high performing centre. We will recommence development planning with Scentre Group to ensure Garden City continues to evolve and remain one of the best retail assets in Australia,”
Mr Williams said.
AMP Capital has a long history in Western Australia and has been involved with Garden City Booragoon for more than 25 years. As part of the transaction, the management of Garden City will transfer to Scentre Group. AMP Capital and Scentre Group have a long-established partnership in co-owning centres including Liverpool, Southland, Tea Tree Plaza, and Warringah Mall.
About AMP Capital
AMP Capital is one of the largest and most experienced direct real estate fund managers in the Asia Pacific, with more than $28 billion in funds under management as at 30 June 2019. AMP Capital offers institutional and private investors access to real estate equity and debt opportunities globally through a range of wholesale funds and separately managed solutions.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.