Moss Capital plans more shopping centre acquisitions after $32.6m Manning Mall, Taree purchase

Fund manager Moss Capital, run by former Macquarie Bank director Bill Moss, has acquired the Manning Mall in Taree from Mirvac for $32.6 million.

The sub-regional shopping centre (pictured below) in the Mid North Coast NSW town has 11,300 square metres of retail space and is anchored by Target and Coles.

The funds management business plans to spend a further $150 million in retail assets, The Australian reported.

Mirvac acquired the Manning Mall for $32.5 million in November 2006 and spent a reported $15 million refurbishing it in 2009.

It was valued at $33 million as of June 2012 with turnover of $48 million per annum.

It is Moss Capital’s second regional NSW retail acquisition after it acquired the Griffin Plaza at 2 Yambil Street for $14.75 million in November last year.

The 7,225 square metre neighbourhood shopping centre was purchased from Millennium Asset Management on a yield of around 10.5%.

Bill Moss managed Macquarie Group’s global banking and real estate businesses as part of a 23 year career at the investment bank.

He founded, grew and led Macquarie real estate group to where it managed over $23 billion worth of investments around the world.

Commenting on the latest acquisition, Moss Capital’s head of real estate, Michael Baliva, said Manning Mall fitted its investment criteria "given its non-discretionary focus, robust cash flow, attractive acquisition yield of 10.4% and its strong growth in centre sales following the closure of a competing Coles supermarket in the immediate area".

 

“The centre will deliver our investors high risk-adjusted returns with forecast income distributions in excess of 10 per cent per annum; significantly more attractive than from A-REITs investing in similar assets.”