Fast growing investor JY Group has outlaid $167 million for a 50% interest in one of Sydney’s oldest shopping centres – Roselands Shopping Centre in Sydney’s south-west.
JY Group already owns three Melbourne shopping centres, having teamed with Mulpha Australia to acquire Brimbank Shopping Centre for $153 million in 2019, before joining with property funds manager Haben to purchase Casey Central from M&G and Stockland The Pines for $225 million and $155 million respectively.
CBRE’s Head of Retail Capital Markets, Pacific, Simon Rooney negotiated the off-market sale of Roselands on behalf of CIP Asset Management, amid a surge in buyer interest in shopping centre investment opportunities.
Rooney noted that almost $4.52 billion had flowed into Australian retail investments in Q2 and Q3, up 118% on the same period last year and markedly ahead of the comparative spikes in office and industrial transactions (which were up 88% and 87% respectively).
That momentum has continued into Q4, with yesterday’s announcement that UniSuper and Cbus Property have partnered with AMP Capital to take majority ownership of Pacific Fair on the Gold Coast and a half stake in Sydney’s Macquarie Centre in a $2.2 billion deal.
“Retail is the real mover at present, with at least another $2 billion in assets expected to change hands this year,” Rooney said.
“The comparative returns and value proposition is clearly compelling, with major owners now able to competitively rebalance portfolios, allowing incoming investors to strategically acquire some of Australia’s best retail assets. This return of institutional capital into the sector, combined with strong private investor demand, will see heightened transactional activity into 2022.”
Rooney noted that Roselands’ strong performance, track record and future value-add, mixed-use development potential had been key buyer drawcards.
“Roselands provided an extremely rare and highly sought-after opportunity to acquire a stake in a Sydney metropolitan-based regional shopping centre,” Rooney said.
In 2019, Vicinity Centres, co-owner of Roselands Shopping Centre delivered a $90 million fresh food precinct – The Markets.
‘The New Roselands’ is a community-focused, culinary destination that offers shoppers greater convenience and a premium food retail experience including a new ALDI, a transformed Coles, a new Woolworths and a wide selection of casual dining and quick bite options all on one convenient level.