JY, Vicinity team again for mall

Carlingford Court contains 33,298 square metres over four floors.

JY Group has purchased a half stake in another mall – this time in Sydney’s north west Carlingford.

The interest in Carlingford Court, which has significant development upside, is costing $120.5 million, reflecting a 6.3 per cent passing yield.

Vendor, Telstra Super, outlaid $88.5m in December, 2013; it bought the property in equal partnership with Vicinity forerunner Federation Centres.

The 3.55 hectare Carlingford asset (outlined), 24 kilometres from the CBD.

The JY deal prices it at $241m – $10m more than the June book value and $36.5m over its ($204.5m) December appraisal.

Carlingford is about 24 kilometres from the CBD.

Big block, development upside

Spreading 3.55 hectares, Carlingford Court at the north east corner of Carlingford and Pennant Hills roads, contains 33,298 square metres of lettable area over four floors.

There are also 1427 car parks.

Coles, Target and Woolworths are the anchors.

There are seven mini majors too – Bing Lee, Fitness First, McDonald’s and The Reject Shop amongst them – and 65 specialty stores.

The Weighted Average Lease Expiry is 4.7 years – almost 20 per cent longer than it was 12 months ago.

The property also includes a 1762 sqm development-ready portion.

Fully let, the $120.5m off-market sale to JY reflects a 6.5pc market yield.

CBRE’s Simon Rooney represented Telstra Super.

“The centre is anchored by a strong performing double supermarket offer, with Woolworths and Coles accounting for over $96m in combined annual turnover, together with a strong non-discretionary and convenience retail amenity,” the agent said (story continues below).

Roselands, owned by JY and Vicinity, was the southern hemisphere’s largest shopping centre when it opened in 1965.

It also provides the potential for a mixed-use residential development in the longer term, to capitalise on the location close to Carlingford railway station, he added.

JY spends through pandemic

JY, which represents private investors, has been boosting its Australian portfolio through the pandemic backdrop; it now holds close to $1.8b of local product.

Last year it paid Challenger $167m for a half stake of the Roselands complex – south west of Sydney, and 24km from Carlingford Court.

On 14.3ha, that investment was the city’s first regional shopping centre and the largest in the southern hemisphere when it opened in 1965, Mr Rooney, who brokered that deal, said at the time.

Coincidentally, the balance is also owned by Vicinity.

Haben partnership

JY has also been building a portfolio with Sydney investment house Haben.

Thirteen months ago, in a 50:50 partnership, the pair picked up Wollongong Central for $402m, from long-time owner GPT.

The amalgamation of two malls developed in the 1970s and 1980s – that property, like Carlingford, has high density residential and office development potential.

JY and Haben also last year co-purchased Casey Central, on 10.6ha at Narre Warren, a growth corridor south east Melbourne, for $225m.

That vendor was M&G Investments, which held it since 2016.

Colliers’ Lachlan MacGillivray brokered both sales.

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Marc Pallisco

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