MAB Goes Shopping in the USA
MAB Corporation is a quintessentially Melbourne company; proud of its local roots and intrinsic to the Melbourne property industry. However, in recent years MAB has expanded its horizons to the USA and in particular, the burgeoning shopping centre market. This push into the USA has not attracted much fanfare but has been successful nonetheless.
In June 2016, one of its most important US developments will be completed. The Cascades Overlook shopping centre is an open air mixed-use development of about 13,935m2 anchored by a large scale Harris Teeter upscale supermarket. It is located in metropolitan Washington DC at Sterling, in Loudoun County, Virginia which is the second wealthiest county in the United States.
Sterling is a fast growing area, popular due to its proximity to Dulles International Airport and the tech corridor. Cascades Overlook comprises an array of retail offerings, restaurants and office space. Luxury residential units that link to the retail centre will be developed by external parties. It is also adjacent to a large community college which will feature more than 20,000 students by mid-2016.
“We have an enviable track record in managing Australian property assets and we apply the same and proven approach to our US portfolio,” said Nick Gray, General Manager, Investment Management, MAB.
One of MAB’s guiding mantras is ‘collaborative partnerships’ and this typifies MAB’s venture into the US market, by way of a number of joint ventures. The Cascades Overlook development is the first project delivered by the partnership between MAB and Reinsurance Group of America (RGA), which has entered into a joint venture with developer Meladon Group.
“Our strength lies in our locally based US team that has established a track record over the past 10 years, supplemented by MAB’s significant experience in investment and development as well as managing third party capital through its funds management operation,” said Mr Gray.
MAB’s other US activities involve MAB American Retail Partners joint venture with Inland Real Estate Corporation of Chicago. Inland Real Estate Corporation is a REIT listed on the NYSE and is one of the USA’s largest commercial real estate and ï¬nance groups, representing more than 45 years of expertise and integrity in the industry. It is a part of the Inland Group. The purpose of the joint venture is to develop grocery anchored shopping centres in the South East of the USA.
The MAB-Inland joint venture has already led to the following:
• One centre completed – Shoppes at Rainbow Landing, Rainbow City, Alabama which opened in November 2015 and is anchored by a 6,020m2 Publix Supermarket;
• One centre under construction and due for completion in late 2016 – Weaverville Plaza, Weaverville, North Carolina;
• A further centre approved and expected to commence construction in mid-2016 – Tiger Point Pavilion, Pensacola, Florida;
• Publix Supermarkets has approved a new store at Midtown Mobile, Mobile, Alabama; and
• A further five sites throughout the US have been optioned for the MAB-Inland joint venture.
“The US market is a key one for the MAB group. Our proficiency in collaborating with great partners makes us very optimistic about our prospects to consolidate and grow in this exciting market,” concluded Mr Gray.