AMP raises $200 million to develop Sydney's second biggest shopping mall in North Ryde

AMP Capital will use $200 million of new equity raised from investors in its Shopping Centre Fund to help fund the redevelopment of Macquarie Centre in North Ryde into the second biggest mall in Sydney as well as upgrade the Ocean Keys mall in Perth.

In October last year, AMP Capital announced it would spend $390 millions redeveloping Macquarie Centre from 97,000 square metres to 135,000 square metres gross leasable area with more than 375 speciality retailers. 

On completion in the last quarter of 2014, Macquarie Centre, with will be the second largest shopping centre in Sydney and a top 10 centre by size in Australia.

The biggest shopping centre in Sydney is Westfield Parramatta at 137,000 square metres. 

Macquarie Centre is 100% owned by AMP Capital managed funds after it acquired Westfield Group and Westfield Retail Trust’s 50% interest for $426 million in October last year.

AMP Capital will spend $100 million redeveloping Ocean Keys in Clarkson, Perth, also due for completion at the end of 2014.

The centre will get a new Target store, an additional 48 specialty stores, a new dining precinct, a multi-deck car park, commercial offices and 10 residential apartments attached to the centre.

The $200 million equity raising came from Australian institutions and a new mandate from a European pension fund. 

“We were very happy with the level of interest we have seen in the fund and the speed at which we secured funding from both domestic and international investors," said AMP Capital Shopping Centre fund manager Conrad Sinclair.

The capital raising launched in November last year.

“Despite softer retail conditions investors have recognised the very high quality of the portfolio and ability to add further value over the long term as well as AMP Capital’s ability to deliver these outcomes.  Their investment allows them to participate in the growth of leading shopping centres with significant development opportunities.

The AMP Capital Shopping Centre Fund is a $2.3 billion sector specific shopping centre fund with exposure to 11 assets in five geographic sectors across Australia and New Zealand.