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.

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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.”

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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