Australian investment manager QIC agreed to acquire a 49% stake in a real estate portfolio of eight U.S.-based regional retail malls for A$435.6 million (US$421.7 million) from Forest City Enterprises and form a joint venture with the U.S. real estate management firm to manage the properties.
The move should significantly expand “the opportunity set” for QIC in serving institutional investors in Australia, said Steven Leigh, managing director of Brisbane-based QIC Global Real Estate.
QIC's current property portfolio of more than A$10 billion is concentrated in an Australian property market where opportunities to put new money to work have become tougher to find, adding to the attraction of garnering greater exposure to the U.S. property market, he noted.
In a news release, David J. LaRue, president and CEO of Forest City, said the funds raised by the sale of that 49% stake in the eight regional malls will be used to pay down debt and pursue new developments.
QIC has offices in London, San Francisco and Los Angeles.
