QIC is set to acquire a portfolio of US regional malls valued at around $4 billion from its joint venture partner New York-listed real estate company Forest City Realty.
In an update to investors, Forest City’s president and chief executive David LaRue said the firm intends to sell its interest outright in seven of the 11 properties in the joint venture to QIC.
The remaining four properties are expected to be sold to the Brisbane-based investment manager in the future, LaRue added.
QIC entered the US real estate market in 2013 when it formed a $2.05 billion joint venture with Forest City. The pair have since partnered on eight US mall joint ventures across the country.
In February QIC bought a 51 percent stake in a suburban New York shopping center from Forest City, while Forest City also struck a deal with New York-based real estate firm Madison International Realty to acquire a stake in its smaller New York specialty retail portfolio.
Forest City expects to make around $2.2 billion from the sale of these mall portfolios. The group told investors it would see an uplift of about $1 billion in equity valuations from the transactions with the majority of the capital redeployed into new real estate.
QIC is an alternative investment firm offering infrastructure, real estate, private equity, liquid strategies and multi-asset investments. It is one of the largest institutional investment managers in Australia, with A$79.5 billion ($57.6 billion; €53.9 billion) in funds under management. QIC has more than 500 employees and more than 100 clients including governments, pension plans, sovereign wealth funds and insurers, spanning Australia, Europe, Asia, Middle East and the US.