Centro Properties Group and Centro Retail Trust (CER) have jointly bought sizeable US property portfolio New Plan Excel Realty Trust in a US$5 billion shopping spree.
The deal increases Australia's largest manager of retail property syndicates Centro Properties Group's total funds under management by 48 per cent to $23.1 billion.
New Plan has interests in and manages 467 community shopping centres across 38 US states. It also owns 290 convenience shopping centres. The portfolio will be spilt - Centro will acquire US$1.8 billion of properties and Centro the remaining US$3.2 billion.
"This bid is an excellent growth opportunity for Centro Retail Trust to increase and diversify its property portfolio and meet the demands of Australia investors for quality international retail property investments for their growing superannuation savings," Centro Properties Group chairman Brian Healey said.
Centro is now established as the third largest owner/manager of shopping centres in the US.
"This investment is a rare opportunity for Centro Retail to continue its accretive growth providing strong returns to investors. Quality retail property investments are difficult to access in the current environment of strong increased investment demand for well managed retail property assets, particularly from the growing superannuation funds market, Centro chief executive officer Andrew Scott said.
Centro has an 80 per cent market share in the management of retail property investment syndicates in Australia. It is a major manager of direct property funds and wholesale funds which invest in Centro's retail properties in Australasia and the United States. The company has a market capitalisation of $7.6 billion.
