Vicinity Offloads $475m Shopping Centre Shares

ASX-listed retail property group Vicinity Centres has sold half shares in two New South Wales shopping centres and another in Adelaide for a collective $475 million.

The sales come amid “resurging buyer interest” in shopping centre investment, according to agents CBRE, and were driven by Vicinity’s mandate to divest “non-strategic assets.”

Roselands Centre and Carlingford Court, half stakes of which were sold for $287 million in an off-market deal, generate turnover of more than $630 million per annum.

The Roselands Centre was one of Sydney’s first regional shopping centres and the largest in the southern hemisphere when it was completed in 1965.
 
Roselands has a gross lettable area of 63,631sq m and is anchored by Myer, Woolworths, Coles, Aldi, and Kmart.

Vicinity has also offloaded a 50 per cent interest in Carlingford Court, a four-level sub-regional centre north-west of the Sydney CBD with a gross lettable area of 33,130 sq m, anchored by Woolworths and Coles. 

The remaining interests in both shopping centres, which were marketed by CBRE, are owned by the Sydney-based JY Group.

▲ Carlingford Centre (pictured) has 87 specialty stores and kiosks, and sits on 35,510sqm at the intersection of Pennant Hills Road and Carlingford Road.

In Adelaide, Vicinity has offloaded a 50 per cent interest in the Elizabeth City Centre to Nikos Property Group, which already co-owns and manages Broadmeadows Central in Victoria and Colonnades in South Australia with Vicinity. 

It has been a busy year for retail investment sales, with more than $6.5 billion in assets traded in 2024 and 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,” CBRE’s head of retail capital markets – Pacific, Simon Rooney said.

Vicinity has been a big contributor to transaction acitivity in the sector as it continues its divestment strategy, and this past year has sold a host of assets in Western Australia, as well as acquiring a $420 million 50 per cent stake in Lakeside Joondalup.