Queensland Investment Corporation spends up on New York mall
Queensland Investment Corporation has struck the next round of deals to extend its US shopping centre portfolio, buying a half stake in a New York mall from its US partner Forest City Enterprises, and signing unconditional contracts on two other centres in more than $US750 million ($1.06 billion) worth of acquisitions.
As foreshadowed late last year, QIC has bought a 51% interest in $US500 million Ridge Hill shopping centre in Yonkers in Westchester County, New York, and will buy stakes in Forest City’s malls in Virgina and Florida.
QIC Global Real Estate managing director Steven Leigh says the deal takes its US retail portfolio to holdings in 11 centres, mostly in joint ventures with Forest City.
“We see further opportunities in the US, and our active management approach means we are constantly monitoring opportunities in the market,” Leigh says.
The deals furthered strengthened its relationship with Forest City and diversified QIC’s existing US portfolio providing wider exposure to the US East Coast, Leigh says.
QIC is buying into Forest City’s The Shops at Wiregrass near Tampa, Florida. Picture: Forest City
The partnership with Forest City was struck two years ago and marked QIC’s entry into the US property market.
QIC, which oversees a $17 billion property portfolio, is likely to look at other private or public US retail assets and beyond its partnership with Forest City after investing in most of the malls the US group had available.
We see further opportunities in the US, and our active management approach means we are constantly monitoring opportunities in the market
“QIC was still keen to invest in the US,” Leigh says, citing low unemployment, GPD growth fuelled by consumer spending, low interest rates, the improving housing market and lower gasoline prices as among the factors driving its interest in the US retail property.
The group’s office in Los Angeles has expanded to 11 staff while two executives are located in Florida, Leigh says.
QIC also owns a stake in Ballston Common, a mall in Arlington, Virginia. Picture: Forest City
The 105,933sqm Ridge Hill centre, which opened in 2008 in affluent Yonkers, about 25km north of Manhattan, is anchored by Lord & Taylor, Whole Food Market, Showcase Cinema and about 70 specialty stores.
Leigh says the investment was in line with the median yield for QIC’s retail portfolio of about 5.4%.
QIC is also buying into Forest City’s The Shops at Wiregrass near Tampa, Florida, a 59,650sqm centre on 27ha of land, and Ballston Common in Arlington, Virginia.
The 53,884sqm centre in Arlington draws on Washington DC catchment area.
Last year, QIC bought 100% of The Shops at Tanforan centre in San Bruno in the San Francisco Bay area for $US174.4m from European fund manager Breevast and helped AustralianSuper to buy 25% of Honolulu’s Ala Moana Centre for about $US1.1bn.
This article originally appeared on www.theaustralian.com.au/property.
