Sunsuper is purchasing a major shopping centre in sub-regional New South Wales, marking the $45 billion super fund's first direct retail acquisition.
Marketown Shopping Centre in Newcastle is being acquired by AMP Capital on behalf of Sunsuper for about $163 million.
The centre is anchored by major tenants Coles, Woolworths, Big W, Officeworks and Dan Murphy's. It has 58 specialty stores, and is positioned to benefit from new transport infrastructure and a university hub nearby.
Sunsuper manager of private markets Michael Weaver said Marketown is the fund's first direct retail acquisition and will complement its existing portfolio which includes interest in the Australian Technology Park in Sydney.
"Although we have considered such opportunities in the past, Marketown is the first asset to deliver on the right price, scale, tenant mix, leasing and development upside," Weaver said.
"Through further development, an asset such as Marketown has the ability to maintain its relevance within Sunsuper's property portfolio as our funds under management continues to grow."
As part of the acquisition, AMP Capital has taken over the management of the shopping centre from Knight Frank.
AMP Capital chief economist Shane Oliver noted in his most recent market update that unlisted commercial property and infrastructure are likely to continue to benefit from the ongoing search for investor yield.