QIC Announces Acquisition of The Shops at Tanforan in San Bruno, California

Aug 17, 2015, 11:30 ET from QIC

NEW YORK, Aug. 17, 2015 /PRNewswire/ -- QIC announced today that it has acquired The Shops at Tanforan shopping center in the San Francisco Bay area of San Bruno, California. QIC acquired the approximately 970,000 square foot shopping center for a purchase price of US$174.4 million on behalf of a major Australian client.

The acquisition, which represents QIC's first 100 percent owned U.S. property, further cements the firm's U.S. platform, and is a natural next step from QIC's two-year U.S. real estate joint venture with Forest City Enterprises, Inc. (NYSE: FCE.A and FCE.B) of eight, high-quality retail assets. QIC is a global diversified alternatives investment firm offering real estate, infrastructure, private equity, liquid strategies and multi-asset investments, and one of Australia's largest institutional investment managers.

The Shops at Tanforan is the tenth U.S. retail property QIC has invested into on behalf of its Australian clients over the last 18 months.  Earlier this year, QIC assisted AustralianSuper – one of Australia's largest pension funds – to acquire a 25 percent stake in Honolulu's Ala Moana Centre for approximately US$1.1 billion.

The Shops at Tanforan is located in San Bruno, 13 miles south of San Francisco, in an area where Google, Apple, Facebook and other tech companies are located.  The Shops have excellent accessibility and exposure by the El Camino Real and nearby Interstates 101 (Bayshore Freeway) and 280 (Junipero Serra Freeway). Its anchor tenants include Sears, Target, JC Penney and Century Theatres.

Matthew Strotton, Head of U.S. Funds and Investments for QIC, said: "We're delighted to have been able to secure an asset of Tanforan's quality for our client and build on our real estate presence in the United States and in this Northern California market.

"The U.S. market is opportunity rich, and the combination of QIC's on-the-ground office in Los Angeles and teams around the world will continue to enable us to source high-quality assets for our clients."

The Shops at Tanforan were acquired from Breevast B.V., which invests worldwide in commercial and residential real estate and also develops and manages commercial and residential properties, including large-scale portfolios of office buildings, business premises, shopping malls and homes. 

Breevast U.S. CEO Terry Crowley said, "We're delighted to have achieved this transaction with QIC and look forward to developing our relationship with them in other potential areas."

Steven Leigh, Managing Director – Global Real Estate for QIC, said:  "QIC's U.S. real estate strategy is based on three complementary components:

  • Working with AustralianSuper to secure exposures to very high quality dominant malls such as Ala Moana;
  • Our joint venture with Forest City, which gives clients access to a portfolio of regional retail assets; and
  • 100 percent QIC-owned assets like The Shops at Tanforan, which we intend to add more of in the future.

"The scope of our global activities allows us to deploy the full range of our sourcing, execution and management capabilities in bespoke ways for clients," Leigh concluded.   

About QIC:

QIC is one of the largest institutional investment managers in Australia, with US$56.7 billion1 in funds under management. QIC has about 90 clients including governments, pension plans, sovereign wealth funds and insurers, spanning Australia, Europe, Asia, Middle East and the US. Headquartered in Brisbane, Australia QIC also has offices in New York, San Francisco, Los Angeles and London. For more information, please visit: www.qic.com.

About QIC's Global Real Estate Business:

With around US$9.7 billion2 invested in Australian and international retail and offices, we have developed a reputation for delivering predictable outcomes for clients over the long term.

Our team has extensive experience in deal origination and execution, asset management, leasing, marketing and development.

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The statements and any opinions in this document (the "Information") are for commentary purposes only and do not take into account any investor's personal, financial or tax objectives, situation or needs.  The Information is not intended to constitute personal legal or investment advice and it does not constitute, and should not be construed as, an offer to sell or solicitation of an offer to buy, securities or any other investment, investment management or advisory services.

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1 As at June 30, 2015
2 QIC economic interest in AUM as at June 30, 2015 converted to AUD at Spot FX rate for offshore assets. Does not include FUM from QIC International Property Fund's indirect funds