Signed in the dying days of last year, the proposed deal bodes well for the commercial real estate market in 2022, after deals hit a record $ 12.8 billion for the year. More than half of that volume was minted in the last quarter of last year.
The record tally comes after massive upheaval in the retail industry. Owners of large shopping centers such as Scentre, Vicinity, GPT and Stockland reduced the value of their portfolios by 10% or more in their initial response to the pandemic in mid-2020. Retail real estate values ââwere already under pressure from the increase in online shopping, which has accelerated. during lockdowns for the past two years.
But as rents and values âârebased, investors regained confidence in the asset class.
Further pushing the latest wave of deals last year, UniSuper, Cbus Property and AMP Capital have joined forces to invest $ 2.2 billion in Pacific Fair on the Gold Coast and a 50/50 stake in Macquarie Center. Sydney in October, the largest direct real estate transaction to date. in Australia.
But the strongest theme in the market has been the race of sub-regional shopping centers changing hands, with local fund managers such as Fawkner Property, Haben Property Fund, YFG Shopping Centers and IP Generation rushing for assets at across the country.
Led by Chris Lock, IP Generation refined its tenure last year to focus exclusively on commercial real estate, having won several mall deals over the past two years.
In the middle of last year, the union seized a $ 300 million portfolio of neighborhood malls in New South Wales, built over decades by Sydney billionaire Paul Lederer, a wealthy Lister. longtime and her late uncle.
Shopping center veteran Greg Miles – he worked for more than two decades at Westfield and then Scentre, where he was COO for almost five years – also joined the team last year, taking a stake co-owned in IP Generation with an executive role as a director.