A fund managed by Queensland Investment Corporation (QIC) has bought a A$135m (€84m) shopping centre in Melbourne from PGIM Real Estate.
QIC Active Retail Portfolio has bought Craigieburn Junction, a 25,000sqm mall located in Craigieburn.
Charles Occhinno, QIC’s fund manager in charge of core plus strategies, said: “The acquisition of this defensive retail asset showcases QIC’s conviction in core-plus real estate asset class.”
The fund’s current portfolio of around A$1.1bn covers a diversified exposure in defensive retail, industrial and office assets.
Occhino said that in the wake of the Australian government’s Your Future Your Super (YFYS) legislation, investor appetite in the core plus sector had strengthened.
“Given YFYS assesses performance against the core real estate benchmark, investors will be rewarded for taking a portion of their investment holdings in a core plus exposure,” he said.
The centre offered the new owner, “clear value-add opportunities” to capitalise on, Occhino added.
PGIM bought the large format retail on completion in 2019 from Oreana Property for A$100m. The investor offered the centre for sale in June this year.
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