JY Group goes shopping with major Sydney retail acquisition

The Sydney based JY Group has expanded its Australian retail portfolio with the $318.6 million acquisition of a 50% stake in Sydney’s Bankstown Central.

The acquisition lifts the value of JY Group’s Australian shopping centre assets to over $3.5 billion following the acquisition of a 50% interest in Sydney’s Warriewood Square in late 2024. 

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney was exclusively appointed to steer the off-market Bankstown Square sale process. The remaining interest in the centre is owned and managed by Vicinity Centres.

“Circa $10.3 billion in major Australian shopping centre sales have been completed since the start of 2024, with 15 part-share deals totalling $4.3 billion finalised over the same period,” Mr Rooney said.

“The Bankstown Central sales process was hotly contested, with several bids received from a range of domestic and offshore groups. The centre’s strategic metropolitan location in one of the most tightly held investment destinations in Australia was a key draw card, as was the asset’s strong underlying retail fundamentals, exceptional retailer performance, local transport amenity and genuine value-add potential.”

Bankstown Central is a dominant major regional shopping hub in Sydney’s rapidly growing south-west. Located approximately 17 kilometres south-west of the Sydney CBD, the three-level centre is situated in the heart of the Bankstown CBD, which is a strategic centre in the Greater Sydney plans and forms part of the Sydenham to Bankstown Urban Renewal Corridor.

Providing a gross lettable area of 78,530sqm, the centre is securely anchored by Myer, Big W, Kmart, Coles and Woolworths and includes more than 190 specialty stores. It is also home to the 'Grand Market' fresh food precinct, a flagship Foot Locker store, Uniqlo and JB Hi-Fi.

Spread over an expansive 11.4ha site, Bankstown Central is positioned opposite Bankstown Train Station, which is undergoing a major upgrade expected to be completed in 1H 2026 as part of the Sydney Metro City and Southwest project, and is close to new $2 billion Bankstown Hospital site.

The centre underwent a significant refurbishment completed in 2022 at a total cost more than $60 million, including the creation of "The Grand Market" and the relocation of the bus interchange. The project, part of a broader redevelopment vision, aimed to create a vibrant mixed-use neighbourhood with enhanced transport integration and a vibrant new retail experience. 

The centre provides significant future value -add opportunity to unlock a concept approved development master plan envisioned for the site to include 300,000sqm of new development floorspace (subject to the relevant plannings approvals).

Bankstown Central boasts strong trading characteristics, with total centre annual turnover of $530 million (+4.6% YoY), underpinned by exceptionally performing dual supermarket operators generating more than $120.0m in turnover, together with robust specialty productivity and a sustainable specialty OCR.

The centre is situated within an expansive and growing trade area of 535,873 residents, which is growing by 1.0% per annum and is anticipated to reach 660,173 people by 2046.