Nuveen Real Estate sells stake in Brisbane shopping centre for A$285m

Nuveen Real Estate sells stake in Brisbane shopping centre for A$285m

Nuveen Real Estate, one of the largest real estate investment managers globally with US$130 billion of assets under management, has sold 75 percent stake in Brisbane’s Mt Ommaney Shopping Centre to YFG Shopping Centres for A$285 million.

YFG had purchased a 25 per cent stake in the centre late last year from Vicinity Centres for A$94.5 million. 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.

CBRE negotiated the transaction on behalf of Nuveen Real Estate, one of the largest investment managers in the world, with A$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 CBRE’s head of retail capital markets Pacific, Simon Rooney.

“We expect this trend to continue, as investors seek out high-quality, rarely traded retail opportunities offering attractive return parameters.”

“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,” said Nick Evans, Nuveen Real Estate Head of Asia Pacific.

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.

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.