Fund Manager Takes Half of AMP’s Rockingham Mall

Investment fund manager IP Generation has bought a half-stake in a Western Australian shopping centre from AMP.

It is the largest joint venture and sale of its nature of a regional shopping centre since Invesco sold a half share in the Grand Plaza Shopping Centre at Brown Plains in Queensland to EG Funds for $215 million in 2022.

AMP Capital Shopping Centre Fund sold the share to IP Generation in an off-market sale negotiated by CBRE retail capital markets Pacific head Simon Rooney for $180 million.

“The Rockingham transaction demonstrates the renewed demand for quality, sub-regional and regional assets with a focus on non-discretionary spending,” Rooney said.

Rockingham Centre is the main mall in the area with food, service and convenience offerings and has a gross lettable area of 62,204 square metres.

It is also situated within a key growth corridor.

Coles and Woolworths are anchor tenants in the property along with Kmart, Target and Ace Cinemas.

There is potential for future development on an adjacent lot of vacant land.

The vacant site is 42,617sq m in size and is designated as part of a Strategic Metropolitan Centre, one of only nine such centres identified by the Western Australian government.

Perth CBD is the only area that outranks the site from a planning context, meaning that subject to council approval there will be long-term development opportunities available.

IP Generation last bought Westfield Helensvale in south-east Queensland for $185 million in late 2021.

▲ Boutique fund manager IP Generation also picked up a half stake in Westfield Helensvale shopping centre for $185 million in 2021.

Shopping centre transactions and acquisitions have taken off as a trend in recent months with Telstra Super selling a half share in Carlingford Court for $120.5 million in mid-2022 to the JY Group. 

Dexus has just completed a trio of sales of shopping centres, with the Dexus Wholesale Property Fund selling the Deepwater Plaza in Woy Woy in December 2022 for $112 million to an undisclosed local investment firm.

It also sold the Shepparton Marketplace to Metro Holdings for $88.1 million in October 2022 and the Beenleigh Marketplace south of Brisbane for $85 million to Mintus in December as well.

Earlier in 2022, Lendlease sold off three shopping centres in Western Australia, New South Wales and Queenland, netting more than $520 million in total.