YFG Shopping Centres will take full ownership of Brisbane’s Mt Ommaney Shopping Centre after acquiring the remaining 75% interest from Nuveen Real Estate for $285 million.
CBRE negotiated the transaction on behalf of Nuveen Real Estate, one of the largest investment managers in the world, with AUD $180 billion of assets under management globally.
“Strategic, off-market transactions such as this, reinforce the ability for retail owners to secure competitive pricing outcomes in the current market,” said Simon Rooney, CBRE’s Head of Retail Capital Markets – Pacific.
“We expect this trend to continue, as investors seek out high-quality, rarely traded retail opportunities offering attractive return parameters.”
Family owned and operated YFG currently controls 20 shopping centres in south-east Queensland, including Australia Fair on the Gold Coast and Brookside Shopping Centre in Brisbane's north.
The acquisition follows YFG’s initial purchase late last year from Vicinity Centres of a 25% stake in the Mt Ommaney shopping complex, in a deal also negotiated through CBRE.
Nick Evans, Nuveen Real Estate Head of Asia Pacific said: “The exit price reflects a premium to book value and is an excellent outcome for our client. The disposal further illustrates our growing track record and skillsets in this highly sophisticated market in spite of ongoing headwinds for the sector.”
Nuveen Real Estate’s other retail assets in Australia include a half stake in the Greenwood Plaza in North Sydney and a 33 per cent stake in Myer Bourke Street, Melbourne.
Future development opportunity
The Mt Ommaney transaction provides YFG full control over the centre, with a total GLA of 56,469sqm, over 20,000sqm larger than the next most significant retail centre.
The centre is anchored by a triple supermarket offer of Coles, Woolworths and ALDI, together with a triple discount department store offer of Kmart, Big W and Target.
Mr Rooney noted that the asset will continue to benefit from the extensive population growth occurring in the region and provided significant future redevelopment opportunities.
This includes an approved development application for a 11,481sqm expansion, including a state-of-the-art cinema, casual dining precinct and entertainment destination together with an improved bus interchange and increased parking.
The Mt Ommaney acquisition follows circa $1.2 billion in sub-regional shopping centre transactions across Australia in 2019, including the CBRE negotiated sales of Brimbank Shopping Centre, VIC ($153m), Corio Central, VIC ($101m) and the 25% stake of Mt Ommaney Centre ($94.5m).
CBRE negotiated the transaction on behalf of Nuveen Real Estate, one of the largest investment managers in the world, with AUD $180 billion of assets under management globally.
“Strategic, off-market transactions such as this, reinforce the ability for retail owners to secure competitive pricing outcomes in the current market,” said Simon Rooney, CBRE’s Head of Retail Capital Markets – Pacific.
“We expect this trend to continue, as investors seek out high-quality, rarely traded retail opportunities offering attractive return parameters.”
Family owned and operated YFG currently controls 20 shopping centres in south-east Queensland, including Australia Fair on the Gold Coast and Brookside Shopping Centre in Brisbane's north.
The acquisition follows YFG’s initial purchase late last year from Vicinity Centres of a 25% stake in the Mt Ommaney shopping complex, in a deal also negotiated through CBRE.
Nick Evans, Nuveen Real Estate Head of Asia Pacific said: “The exit price reflects a premium to book value and is an excellent outcome for our client. The disposal further illustrates our growing track record and skillsets in this highly sophisticated market in spite of ongoing headwinds for the sector.”
Nuveen Real Estate’s other retail assets in Australia include a half stake in the Greenwood Plaza in North Sydney and a 33 per cent stake in Myer Bourke Street, Melbourne.
Future development opportunity
The Mt Ommaney transaction provides YFG full control over the centre, with a total GLA of 56,469sqm, over 20,000sqm larger than the next most significant retail centre.
The centre is anchored by a triple supermarket offer of Coles, Woolworths and ALDI, together with a triple discount department store offer of Kmart, Big W and Target.
Mr Rooney noted that the asset will continue to benefit from the extensive population growth occurring in the region and provided significant future redevelopment opportunities.
This includes an approved development application for a 11,481sqm expansion, including a state-of-the-art cinema, casual dining precinct and entertainment destination together with an improved bus interchange and increased parking.
The Mt Ommaney acquisition follows circa $1.2 billion in sub-regional shopping centre transactions across Australia in 2019, including the CBRE negotiated sales of Brimbank Shopping Centre, VIC ($153m), Corio Central, VIC ($101m) and the 25% stake of Mt Ommaney Centre ($94.5m).
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
