Dexus forced to sell $830m stake in Macquarie Centre to super giants
The Supreme Court of NSW found that the transfer of control over the $1.7 billion Macquarie Centre to Dexus was a breach of contract. Photo: Dion Georgopoulos

Dexus forced to sell $830m stake in Macquarie Centre to super giants

Campbell Kwan|Apr 14, 2025

Dexus will be forced to relinquish a half-stake in Sydney’s Macquarie Centre shopping mall, valued at $830 million, after a court sided with superannuation giants and forced the ASX-listed landlord to sell.

Dexus has been in dispute with UniSuper and Cbus Property for control of the asset, one of the city’s largest retail precincts, and had appealed to the Supreme Court of NSW to keep its share of the property. The two industry super funds had accused Dexus of inadvertently breaching a pre-existing agreement when it acquired its half-stake in the $1.7 billion mall.

The Supreme Court of NSW found that the transfer of control over the $1.7 billion Macquarie Centre to Dexus was a breach of contract.
The Supreme Court of NSW found that the transfer of control over the $1.7 billion Macquarie Centre to Dexus was a breach of contract. Photo: Dion Georgopoulos

Macquarie Centre was opened in 1981 and has long been owned by various AMP-related funds. AMP offloaded its real estate asset management business after the Hayne royal commission and a number of scandals involving executive conduct, wholesale board and executive turnover, failed takeover talks and an exodus of funds under management.

The stoush over the mall started two years ago amid the break-up of AMP’s crumbling $28 billion funds empire. Dexus swooped on the opportunity to take over running AMP’s stable of property and local infrastructure funds, a major boost to its ambitions to become a leading investment manager.

But the two funds claimed Dexus’ move on the AMP platform triggered a pre-emptive right for them to acquire the rest of Macquarie Centre.

The Supreme Court in November had ordered the Dexus Wholesale Shopping Centre Fund, which holds the stake, to sell its interest. Dexus appealed the decision in December, but this was dismissed on Friday.

A Dexus spokesman confirmed the fund would not contest the ruling.

“We acknowledge the Supreme Court’s decision and will work constructively with the other co-owner to ensure an orderly transition,” the spokesman said. “The responsible entity and management team of DWSF remain committed to ensuring the best possible outcome for investors.”

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The outcome caps a challenging period for Dexus, whose stewardship of the shopping centre fund has come under scrutiny. In December, a proposed $450 million acquisition of Melbourne’s Woodgrove Shopping Centre collapsed after the fund’s independent board rejected the deal. The asset was subsequently sold to Assembly Funds Management, a Lowy family-backed investment firm run by former Westfield executives, for $440 million.

The Supreme Court’s decision on Friday is a significant win for Dexus’ ASX-listed rival GPT Group, which manages the Macquarie Centre stake owned by Cbus Property and UniSuper. It will now manage the entire centre.

GPT has also secured the management rights for Sunshine Plaza in Queensland and Macarthur Square in Sydney from Lendlease’s Australian Prime Property Fund Retail. Its portfolio includes major shopping centres from Gold Coast’s Pacific Fair to Melbourne’s Highpoint.

UniSuper and Cbus Property declined to comment.