TIAA Henderson Real Estate, the $73 billion global alliance between TIAA-CREF and Henderson Global Investors has acquired a 75 percent stake in a regional shopping center in Australia for A$416.25 million (€289.66 million; $365.46 million).
The rest of the stake will be owned by Federation Centers (FDC), an Australian Real Estate Investment Trust (REIT) specializing in the ownership and management of shopping centers in the country.
Located in Queensland, Mt Ommaney Centre is a 608,914 square feet single level regional shopping center, which was refurbished and expanded in 2010, and now houses 165 tenants.
The deal marks the first real estate investment by TIAA Henderson into Australia.
“Mt Ommaney represents a dominant regional center with a strong tenant base, and provides an opportunity to further unlock potential value,” said Nick Evans, executive director and head of TIAA Henderson’s Australia operations. “The investment is testament to our long term strategy within Australia, where we are committed to building a sustainable business.”
Officially launched in April 2014, TH Real Estate is a 60:40 joint venture between TIAA-CREF and Henderson Global Investors. A month later, the firm launched its first European property fund focusing on core retail real estate assets in Germany, with plans of raising €240 million in equity. There are also plans for launching a debt fund targeting UK property.
According to a company statement, TIAA Henderson owns A$18 billion worth of retail assets throughout Europe and Asia, representing over 170 investments.