QIC, the Australian institutional investment manager, has acquired a shopping center in California for $174.4 million, its first 100 percent-owned US property.
The Shops at Tanforan, a 970,000 square foot shopping center located in the San Francisco Bay area of San Bruno in California, was acquired by QIC on behalf of an Australian client.
“We are delighted to have been able to secure an asset of Tanforan’s quality for our client and build on our real estate presence in the United States and in this Northern California market,” said Matthew Strotton, head of US funds and investments for QIC.
The shopping centre was purchased from Breevast, a Dutch commercial and residential real estate developer and investor. Some of the anchor tenants in the center include American department stores such as Sears and JC Penny.
Breevast’s chief executive officer for the US market said in a statement that the firm looks forward to developing its relationship with QIC in other potential areas as well.
Over the last 18 months, QIC has invested in nine other retail properties in the US on behalf of its clients in Australia. The most recent one was the acquisition of a 25 percent stake in Honolulu’s Ala Moana Centre earlier this year for approximately $1.1 billion, a deal in which QIC was assisting AustralianSuper. QIC also has a two-year joint venture partnership with the Cleveland-headquartered real estate firm Forest City. The partnership, formed in June 2013, marked QIC’s first direct real estate investment in the country, via which it acquired a 49 percent stake in a portfolio of eight US malls owned by Forest City for a total investment of $900 million.
As of end June 2015, Brisbane-headquartered QIC had £36.1 billion (€50.95 billion; $56.49 billion) in funds under management.