Cbus Property & UniSuper join AMP Capital in the AMP Capital Retail Trust (ACRT)
Ownership in two of Australia’s best performing shopping centres; Macquarie Centre and Pacific Fair secured
Record retail transaction demonstrates positive investor outlook and ongoing momentum in Australian retail
One of the largest global retail transactions since 2018
AMP Capital today announced new partners in the AMP Capital Retail Trust (ACRT). UniSuper, one of Australia’s leading superannuation funds and Cbus Property, one of Australia’s leading property investors and developers, have taken the majority ownership of Pacific Fair in Queensland, which was recently recognised as the Queensland Retail Property of the Year1, and 50 per cent ownership of Macquarie Centre in New South Wales.
The $2.2 billion investment reflects the new partners’ positive outlook and momentum in the retail sector, and in particular, the quality of ACRT’s underlying assets, with both shopping centres successfully managed and developed by AMP Capital for more than 30 years. AMP Capital are invested alongside the new unitholders to ensure management alignment.
AMP Capital’s Head of Real Estate, Kylie O’Connor, said: “We are delighted to be working with UniSuper and Cbus Property as manager of these incredible assets. Since 2012, AMP Capital has overseen the redevelopment of the assets on behalf of investors to enhance the retail offering and trade area dominance of Pacific Fair and Macquarie Centre.
“As we move closer to operating under the demerged Private Markets business, we look forward to working with our partners to unlock future opportunities at each asset, both of which are in prime locations within exceptional trade areas. This includes further strengthening performance with innovative retail solutions and capitalising on their mixed-use potential, including Macquarie Centre’s mixed-use DA.
“This deal demonstrates the returning confidence investors have in the retail sector, particularly for high-quality, well managed assets, and the support for our highly regarded and talented management platform,” Ms O’Connor said.
UniSuper’s Head of Property and Infrastructure, Kent Robbins, said: “UniSuper is pleased to announce its latest investment into quality retail assets. We anticipate an increase in returns from certain shopping centres as retailers seek exposure to dominant shopping centres, such as Macquarie Centre and Pacific Fair, to leverage their omni-channel retail plans.
“We look forward to our partnership with Cbus Property and AMP Capital to maximise the potential of the assets, including the mixed-use development opportunities for both centres, to deliver greater retirement outcomes for our members,” Mr Robbins said.
Cbus Property’s Chief Executive Officer, Adrian Pozzo, said: “We are excited to partner with UniSuper and AMP Capital on these premium flagship retail assets located in prime locations, with potential for future growth opportunities in both centres.
“This blue-chip retail portfolio complements Cbus Property’s existing premium commercial office portfolio, which was recently awarded Australia’s highest NABERS Energy rating in the NABERS Sustainable Portfolios Index for the second year in a row,” Mr Pozzo said.
ACRT was established in 2012 with foundation investors Canada Pension Plan Investment Board (CPPIB), Harina Company Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and AMP Life Limited (AMP Life2). In 2016, AMP Life’s interest was transferred into the AMP Life Property Fund (ALPF) managed by AMP Capital.
It marks the largest retail transaction in Australian history, as well as one of the largest global retail transactions since 2018. The deal was facilitated by the AMP Capital Real Estate team in conjunction with the vendors’ advisers Colliers’ Head of Retail Investment Services, Lachlan MacGillivray, as well as Morgan Stanley’s Chairman of Investment Banking, Australia, Tim Church and Head of Real Estate, Australia, Craig Smith.
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About AMP Capital Real Estate
AMP Capital is one of the largest direct real estate fund managers in the Asia-Pacific3 with more than $23 billion4 in assets under management on behalf of institutional and retail investors across the globe. We are also one of the most experienced, with our heritage in real estate investment, management and development spanning over 60 years and many investment cycles, starting with Australia's first skyscraper which opened in 1962. AMP Capital's extensive global network and integrated management model allows its multidisciplinary team of real estate professionals to realise true value for clients through the investment management, property management and development of a portfolio of some of the most iconic shopping centres, office buildings and industrial estates across Australia and New Zealand. AMP Capital Real Estate has recently been recognised as a leader in sustainability with a number of our real estate funds being awarded five-star ratings with global ESG benchmark for Real Assets – GRESB, which places them in the top 20% of funds globally.
About Cbus Property
Cbus Property is a wholly owned subsidiary of Cbus, the industry superannuation fund for the construction, building and allied industries, with funds under management exceeding $65 billion at 30 June 2021. Cbus Property has responsibility for the strategic performance and management of all aspects of the Cbus direct property investment business, including major investments and developments in the commercial and residential sectors. The property portfolio currently exceeds $5.0 billion, with a further $4.0 billion of development work ‘in hand’, making Cbus Property one of Australia’s leading integrated property investors. Cbus Property has extensive experience undertaking sustainable initiatives within Australia and is committed to using its considerable experience in the investment and delivery of developments that provide a benchmark for both economic and environmental sustainability.
UniSuper is one of Australia’s largest superannuation funds and is run solely for the benefit of its members. For more than 35 years, UniSuper has been managing super for people employed in the higher education and research sector and is now open to all Australians. UniSuper currently invests around $100 billion on behalf of more than 450,000 members.
12021 Property Council of Australia Awards
2AMP Life is now part of the Resolution Life Group
3Source: ANREV/INREV/NCREIF Fund Manager Survey 2021
4As at 30 June 2021. This includes AMP Capital’s 24.9 per cent share of PCCP’s NAV, equivalent to A$1.8b
While every care has been taken in the preparation of this document, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) makes no representation or warranty 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. Neither AMP Capital nor any company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this document This document 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 document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document is not intended to be and does not constitute financial advice nor a recommendation to subscribe for or purchase any investment by any person in any jurisdiction nor does it constitute an offer, solicitation or invitation to subscribe or purchase any investment in any jurisdiction where it would be contrary to the laws, regulations or directives in force or applicable in such jurisdiction.