YFG Shopping Centres has completed its acquisition of Brisbane's Mt Ommaney Shopping Centre, purchasing the remaining 75 per cent share for $285 million.

It comes six months after the company bought a quarter stake in the centre for $94.5 from Vicinity Centres.

Both deals were negotiated by CBRE which acted on behalf of Nuveen Real Estate, one of the largest investment managers in the world, in the latest transaction. 

At a glance: 

• YFG Shopping Centres has acquired a 75 per cent share in Brisbane's Mt Ommaney Shopping Centre for $285 million.
• It comes six months after the company bought a quarter stake in the centre for $94.5 from Vicinity Centres.
• CBRE negotiated both deals, acting on behalf of Nuveen Real Estate in the latest transaction.

CBRE Head of Retail Capital Markets for the Pacific, Simon Rooney, said the deal was part of a growing trend strategic, off-market transactions in the retail landscape.

“This deal reinforces the ability for retail owners to secure competitive pricing outcomes in the current market,” he said.

“We expect this trend to continue, as investors seek out high-quality, rarely traded retail opportunities offering attractive return parameters.”

Source: CBRE

Family owned and operated, YFG currently controls 20 shopping centres in south-east Queensland, including Australia Fair on the Gold Coast and Brookside Shopping Centre in Brisbane's north.

Nick Evans, Nuveen Real Estate Head of Asia Pacific said the sale price was an "excellent outcome".

"The disposal further illustrates our growing track record and skillsets in this highly sophisticated market in spite of ongoing headwinds for the sector," he said.

Nuveen Real Estate’s other retail assets in Australia include a half stake in the Greenwood Plaza in North Sydney and a 33 per cent stake in Myer Bourke Street, Melbourne.

Source: CBRE

Future development opportunity 

The Mt Ommaney transaction provides YFG full control over the centre, with a total GLA of 56,469 square metres, over 20,000 square metres larger than the next most significant retail centre.

The centre is anchored by a triple supermarket offer of Coles, Woolworths and ALDI, together with a triple discount department store offer of Kmart, Big W and Target.

Mr Rooney noted that the asset will continue to benefit from the extensive population growth occurring in the region and provided significant future redevelopment opportunities.

This includes an approved development application for an 11,481 square metre expansion, including a state-of-the-art cinema, casual dining precinct and entertainment destination together with an improved bus interchange and increased parking.

The Mt Ommaney acquisition follows circa $1.2 billion in sub-regional shopping centre transactions across Australia in 2019, including the CBRE negotiated sales of Brimbank Shopping Centre, VIC ($153m), Corio Central, VIC ($101m) and the 25 per cent stake of Mt Ommaney Centre ($94.5m). 

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