JY buys Roselands shopping centre stake

JY Group has paid $167 million for a half-stake in Sydney’s Roselands Shopping Centre.

Challenger’s CIP Asset Management was the vendor.

Vicinity is the co-owner; the price reflects a 20 per cent premium to its ($278m) June valuation, which assumed a 6.25pc capitalisation rate.

The deal comes three months since Hong Kong based JY partnered with Haben to buy Melbourne’s Casey Central of M&G Investments for $225m – a 5.38pc return.

Also in that city, the same partnership paid Stockland $155m for The Pines, in Doncaster East, in 2019.

Not long earlier, JY teamed with Mulpha Australia to acquire Brimbank Shopping Centre, from Blackstone, for $153m.

That asset is at Deer Park, 17 kilometres west of the Victorian capital.

Roselands Shopping Centre

On 14.3 hectares, with mixed-use development upside, the Roselands complex contains 63,344 square metres anchored by Aldi, Coles, Kmart, Myer and Woolworths.

“Roselands Shopping Centre was one of Sydney’s first regional shopping centres and was the largest in the southern hemisphere on its completion in 1965,” CBRE marketing agent Simon Rooney said.

“Located within an extensive and well-established trade area, it provides an immediate opportunity to create a truly mixed-use town centre precinct,” he added.

“Retail is the real mover at present, with at least another $2 billion in assets expected to change hands this year,” according to the executive (story continues below).

Last month, we reported Link REIT – Asia’s biggest retail trust – was outlaying over $530m for a half share in three Sydney retail assets – the Queen Victoria Building, The Galeries and The Strand.

In June, Charter Hall and Abacus paid GIC and Nuveen $270.4m for a 66.7pc interest in Myer Melbourne.

Coincidentally Vicinity holds the balance of those four assets too.

Busy month for shopping centre deals

The Roselands deal is the latest major shopping centre to trade this quarter.

Yesterday, Cbus and UniSuper announced they would team with AMP Capital to acquire a 50pc stake in the c$1.6b Macquarie Centre, also in Sydney, and a four fifth share of the Gold Coast’s $1.8b Pacific Fair.

Three Wollongong retail investments have also sold – Wollongong Central, for over $400m, Warrawong Plaza ($140m) and a Woolworths supermarket with five specialty stores ($36m).

Also this month, SCA Property Group outlaid $108.1m for four retail assets, including Brisbane’s Moggill Village, Centuria managed Primewest spent $71.2m on Geraldton’s Northgate Shopping Centre while Sentinel paid GPT c$420m for Darwin’s Casuarina Square.

Vicinity boosted its portfolio, too, snapping up a half stake in Gold Coast’s Harbour Town for $358m.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.