AMP Capital has shrugged off a shaky 2021 to cement its future in retail, doubling down on its “Pac and Mac” deal.
The 172-year-old company sold off its Global Equities and Fixed Income business to Macquarie Asset Management, while its AMP Capital Diversified Property Fund merged with Dexus in April despite attempts to fend off the takeover bid.
Upping its $2.2-billion Pac and Mac deal, AMP Capital’s Shopping Centre Fund (ASCF) has splashed $422.5 million on an additional 25 per cent stake in Macquarie Centre in northern Sydney.
And together with UniSuper and Cbus Property it has spent a further $336.4 million to take the remaining 20 per cent stake in Pacific Fair on the Gold Coast through its AMP Capital Retail Trust (ACRT).
Both stakes were acquired from Dexus Wholesale Property Fund. When the acquisitions settle early next year, ASCF and ACRT will each hold 50 per cent of the Macquarie Centre, while ACRT will entirely own Pacific Fair, according to AMP Capital’s global head of real estate Kylie O’Connor.
“With these latest acquisitions in Pacific Fair and Macquarie Centre, AMP Capital’s investors will hold stakes in 14 of the most highly regarded shopping centres in Australia and New Zealand,” O’Connor said.
“The latest acquisitions cap off a record year of more than $3.6 billion in retail transactions, as well as the introduction of two new parties into ACRT in Cbus Property and UniSuper, which reflects the sector-leading expertise of AMP Capital’s highly regarded real estate team and the continuing strength of our platform.”
In October 2021, AMP Capital introduced two new partners in ACRT—Cbus Property, one of Australia’s leading property investors and developers, and UniSuper, one of Australia’s leading superannuation funds, via a $2.2-billion investment in Pacific Fair and Macquarie Centre.
It was billed as the largest retail transaction in Australian history, as well as one of the largest global retail transactions since 2018.
AMP Capital Shopping Centre Fund has $3.5 billion in assets as at September 2021, with 14 assets across Australia and New Zealand but has recently divested assets, including the Warringah Mall.
The portfolio has a high weighting to regional and super regional shopping centres as AMP Capital looks to diversify into larger core assets with greater development potential and upside.
CBUS Property chief executive Adrian Pozzo said the increased investment in Pacific Fair demonstrated a commitment to the future of retail at the shopping centre.
“The further investment into Pacific Fair with UniSuper and AMP Capital reinforces our conviction in the underlying performance of the centre, the potential for future growth and the alignment with our new partners,” Pozzo said.
UniSuper head of property and infrastructure Kent Robbins said the investment would increase UniSuper’s exposure to the reopening of economies, and growth opportunities at the “iconic centre”.