Australian Investment Firm Lands American Mall Portfolio Worth $4bn

Australian fund manager QIC has partnered with Forest City Enterprises (FCE) to acquire a US regional shopping centre portfolio worth approximately US$3.175 billion ($4.05 billion).

The transaction of the portfolio's 10 malls will be completed in two tranches, with the transfer of interests in the first six malls expected to complete by the end of the year.

“QIC and Forest City have been in a very successful joint venture since 2013, and we are pleased to have reached this milestone,” QIC managing director of global real estate Steve Leigh said.
QIC and Forest City's joint venture commenced in 2013, with QIC paying $US424.8 million for a 49 per cent stake in eight shopping malls.

“We are building off more than a decade of amassing market intelligence and understanding in the US retail sector," Leigh said.

"We view the US real estate market and the retail sector in particular as a strong investment opportunity. We are encouraged by the broader economic conditions in the US and the resilience of the consumer as demonstrated by continuing strength in the underlying fundamentals for the portfolio.

We understand the importance of regional malls to their local communities and have the capability and the capital to evolve these assets into multi-faceted destinations,” he said.

The assets in the first tranche include:

• Northfield Stapleton in Denver, CO

• Westchester’s Ridge Hill in Yonkers, NY

• Wiregrass in Tampa, FL

• Robinson Mall in Pittsburgh, PA

• Antelope Valley Mall in Palmdale, CA, and

• South Bay Galleria in Redondo Beach, CA.

• Victoria Gardens in Rancho Cucamonga, CA

• Galleria at Sunset in Henderson, NV

• Promenade Temecula in Temecula, CA, and

• Short Pump Town Center in Richmond, VA.