TIAA Henderson Real Estate is investing AUD416m (€290m) in a Brisbane shopping centre, its first Australian retail deal on behalf of TIAA-CREF.

TH Real Estate, part-owned by US institution TIAA-CREF, has agreed to buy a 75% interest in Mt Ommaney Centre from developer Federation Centres.

It is the first Australian retail investment on behalf of TIAA-CREF’s general account.

Federation Centres will retain the remaining 25% interest and will continue to manage the Queensland shopping mall.

Nick Evans, who heads up the Australian business at TH Real Estate, said the deal reflected TH Real Estate’s “long-term strategy” to build “a sustainable business” in Australia.

He added: “Mt Ommaney represents a dominant regional centre with a strong tenant base, and provides an opportunity to further unlock potential value.”

Federation Centres CEO and managing director Steven Sewell said: “The purchase of Mt Ommaney Centre provides us with the opportunity to invest in a quality regional shopping centre in a strong demographic market in the western suburbs of Brisbane, as well as enter into a new co-ownership relationship with TH Real Estate.

“The transaction will substantially increase our management of centres in Queensland and, combined with our AUD1.3bn redevelopment pipeline, represents continued enhancement and improvement of the Federation Centres portfolio of Australian shopping centres.”