Offshore investors to take stakes in Macquarie mall and mulling Centro investments

Larry SchlesingerDecember 8, 2020

Suburban shopping centres remain on the radars of offshore investors with a large mall in Sydney's Macquarie Park and five Centro shopping centres attracting interest.

The Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB) are considering acquiring a 50% stake in the Macquarie Centre shopping mall in north-west Sydney, according to reports in the Australian Financial Review.

Westfield holds a 27.5% stake in the centre, which is valued at $249.6 million with Westfield Retail Trust holding a 22.5% stake.

The other 50% interest is held by AMP Capital.

According to the AFR, the two offshore institutional investors will each acquire one of the Westfield stakes.

CPPIB has already committed to investing $1 billion in Lend Lease’s $6 billion Barangaroo project on Sydney harbour.

Centro Retail Australia is selling its half-shares in five malls said to be worth around $400 million.

According to Centro boss Steven Sewell the assets have “attracted quite a bit of investor appetite” both domestically and offshore.

Sewell is looking to raise cash to repay loans made to Singapore’s sovereign wealth arm, GIC, which owns a portion of debt on each of the shopping centres.

The five centres up for sale are Centro Cranbourne in Melbourne’s south east fringe, the nearby Star Zone Karingal, Centro Warriewood in Sydney’s northern beaches, Centro Mandurah south of Perth and neighbouring Centro Halls Head

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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