Canadian and Abu Dhabi investment injection accompanies Westfield and AMP Capital's $1.7 billion shopping centre restructure
AMP Capital managed funds have acquired Westfield's interest in three of Australia’s best known retail assets, the Macquarie Centre in Sydney, Pacific Fair on the Gold Coast and Garden City Booragoon in Perth, for $1.025 billion.
At the same time, the Westfield entities WDC and WRT have acquired AMP Capital managed funds’ interests in four centres – Garden City Mt Gravatt in Brisbane, a part interest in Warringah Mall in Sydney and Knox and Casey Central in Melbourne – for A$710 million.
It's a restructure of their long-standing joint venture, with the price for all acquisitions and divestments supported by independent valuations.
AMP Capital managed funds will be a $315 million net buyer of assets and following the simplification of its partnerships with Westfield, the number of co-owned shopping centres is reduced from 10 to four.
AMP Capital has attracted A$872 million in new equity from the Canada Pension Plan Investment Board (CPPIB) and Harina Company Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The new equity will be invested in the AMP Capital Retail Trust (ACRT), which has interests in Macquarie Centre and Pacific Fair.
Their respective investments will allow these highly regarded international investors to participate in the growth of leading shopping centres located in high population growth areas with significant development opportunities.
AMP Capital managed funds will also invest A$970 million on the redevelopment of Macquarie Centre and Pacific Fair.
The redevelopment of Macquarie Centre will begin immediately and plans for the redevelopment of Pacific Fair are being finalised.
The redevelopments will create premier retail and leisure destinations, positioning both assets in the top 10 of Australian leading regional shopping centres. Planning is also underway for a proposed redevelopment at Garden City Booragoon.