Vicinity Centres finalises major $287 million Sydney retail portfolio disposals

Vicinity Centres has successfully sold half shares in Sydney’s Roselands Centre and Carlingford Court for a combined $287 million, amid resurging buyer interest in shopping centre investment opportunities.

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney exclusively negotiated both off-market transactions. The remaining interests in both shopping centres are owned by the Sydney-based JY Group.

The transactions cap an active year for retail investment sales, with more than $6.5 billion in assets traded in 2024 - significantly surpassing the $5.06 billion total, with several transactions still in play.

“Throughout 2024, we have seen offshore and domestic institutional capital re-enter the market, given the significant pricing and income recalibration, compelling returns, and high-quality opportunities on offer,” Mr Rooney noted.

“The overriding investor sentiment is that there’s an opportunistic window with limited, but increasing competition for assets, as motivated owners look to close out redemptions and reset portfolios throughout 2025.

“The Roselands and Carlingford acquisition demonstrates the continued demand for quality metropolitan, sub-regional and 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.”

Roselands Centre and Carlingford Court have a combined gross lettable area (GLA) of approximately 96,761sqm, generate exceptional centre turnover totalling more than $630 million per annum, and occupy significant high-profile metropolitan sites.

“The value proposition for larger sub-regional and regional shopping centres has become increasingly compelling for investors, given the superior comparative returns on offer, rebased sustainable income profiles and robust performance fundamentals, as compared to most alternative commercial property asset classes,” Mr Rooney said.

Roselands Centre was one of Sydney’s first regional shopping centres and was the largest in the southern hemisphere on its completion in 1965.

It is situated just 16 kilometres south-west of the Sydney CBD, has a GLA of 63,631sqm and is securely anchored by Myer, Woolworths, Coles, Aldi, and Kmart. The attractive tenancy profile is supported by 11 mini-majors and 128 specialties and kiosks.

Located within an extensive and densely populated trade area, it provides an immediate opportunity to create a truly mixed-use town centre precinct, given the sizeable land area of 14.3ha, prominent Sydney metropolitan location and access to public and private infrastructure.

Combined, the centre’s supermarkets generate more than $165 million in annual turnover, underpinning the overall centre MAT of more than $400 million.

Carlingford Court is a large, four-level sub-regional centre positioned 18km north-west of the Sydney CBD.

It has a total GLA of 33,130sqm and is anchored by robust performing dual supermarket operators Woolworths and Coles together with a Target discount department store and eight mini-majors, including Bing Lee, Fitness First and The Reject Shop.

Both supermarkets trade exceptionally well, with combined trade of more than $100 million complemented by robust speciality tenant performance, trading at more than $12,000/sqm.

There are more than 87 specialty stores and kiosks, with the retail offering supported by a wide selection of restaurants, cafes, and takeaway food outlets.

The centre itself occupies a prominent 35,510sqm site alongside the adjoining surplus land totalling 1,762sqm at the intersection of Pennant Hills Road and Carlingford Road.