AMP Capital has announced it has acquired Marketown Shopping Centre in Newcastle, New South Wales, from The Cartier Group for approximately $163 million on behalf of Sunsuper.
Marketown Shopping Centre is a 26,000 square metre sub-regional centre, which spans two separate sites connected by a carpark with 920 parking spaces. It is anchored by major tenants Coles, Woolworths, Big W, Officeworks and Dan Murphy’s and has 58 specialty stores.
AMP Capital’s Head of Separate Accounts, John Dynon, said: “Our focus is on delivering great investment outcomes for our clients in a selective and disciplined manner. We are delighted to have found an opportunity for Sunsuper to invest in Newcastle that meets this objective, helps our client to achieve their goals, and pleasingly demonstrates our ability to execute in a competitive market.”
Following the acquisition of Marketown, Sunsuper’s portfolio is now well positioned and consists of more than eight quality commercial assets.
Michael Weaver, Manager Private Markets, Sunsuper, said: “Marketown is the first direct retail acquisition for Sunsuper and it complements our existing portfolio, which includes the interest we acquired in Australian Technology Park, Sydney in 2015.
“Although we have considered such opportunities in the past, Marketown is the first asset to deliver on the right price, scale, tenant mix, leasing and development upside.
“Through further development, an asset such as Marketown has the ability to maintain its relevance within Sunsuper’s Property portfolio as our funds under management continues to grow.”
Marketown is well positioned to benefit from new transport infrastructure and a university hub. With the majority of the income stream secured by highly-rated covenants, the centre also has potential for future repositioning and development.
As part of the acquisition, AMP Capital has taken over the management of the shopping centre from Knight Frank, which means, effective today, the Marketown Centre Management team of four will become members of the AMP Capital team.