This article is from the Australian Property Journal archive
HONG Kong-based investment house JY Group has broadened its reach in the Australian shopping centre sector by acquiring a 50% stake in Sydney’s Carlingford Court from Telstra Super, for $120.5 million.
The four-level 33,298sqm Carlingford Court shopping centre, sits around 18km north-west of the Sydney CBD and is anchored by national retailers including Coles, Woolworths and Target.
This latest acquisition is the second time JY Group has become co-owner of an asset with the centre’s manager Vicinity Centres in the last year.
Simon Rooney from CBRE negotiated the off-market transaction, which resulted in a passing yield of around 6.3% and a fully leased yield of 6.5%.
“The result demonstrates the continued demand for quality, metropolitan sub-regional assets with a focus on non-discretionary spending. There is particularly strong interest in assets which offer mixed-use development potential and strategic value-add opportunities,” said Rooney, head of retail capital markets at CBRE, Pacific.
While the viability of shopping centre assets has been through the wringer in the last few years, Carlingford Court ups its appeal with its potential for a mixed-use apartment development, STCA.
Particularly due to the centre’s prime location in Sydney’s north-west, in an affluent and well established trade area, and close proximity to Carlingford railway station.
In addition to its national retail tenants, the centre includes 65 specialty stores and mini majors such as Bing Lee, Fitness First and The Reject Shop, with retail supported by food, beverage and hospitality offerings.
Sitting on a prominent 35,510sqm site, with 1,762sqm in adjoining vacant land, the centre pulls in 5.3 million visitors per annum, with a MAT of $188 million.
JY Group’s total assets in Australia amount to nearly $1.8 billion after this latest purchase, following its 2021 acquisitions of Wollongong Central Shopping Centre and Roselands Shopping Centre in Sydney’s southwest.
