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JY Group has invested $167 million for a 50% interest in Roselands Shopping Centre. Image: Supplied
  • Investor JY Group has outlaid $167 million for a 50% interest in Roselands Shopping Centre in Sydney’s south-west.
  • Centre's supermarkets generating more than $140 million annually.
  • CBRE's head of retail and capital markets Simon Rooney said, almost $4.52 billion had flowed into Australian retail investments in Q2 and Q3, up 118% on the same period last year.

Investor JY Group has outlaid $167 million for a 50% interest in Roselands Shopping Centre in Sydney’s south-west.

The investor acquired the asset off-market through negotiations from CIP Asset Management before Roselands began the formal campaign.

According to CBRE’s head of retail capital markets, Pacific, Simon Rooney, the price reflects a material premium of the most recent external book valuation and a continuing shift in investor sentiment towards premium retail investment opportunities.

Roselands will add to JY Group’s portfolio of three Melbourne shopping centres: Brimbank Shopping Centre, Casey Central, and Stockland The Pines, acquired for $533 million respectively.

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Brimbank Shopping Centre was acquired by JY Group in 2019 for $153 million. Image: Brimbank Shopping Centre.

Roselands Shopping Centre

The centre recently benefitted from a $90 million redevelopment and a significant upgrade to the ground floor food precinct with new retailers including Aldi, a refurbished Coles, and a new Woolworths.

Combined, the three supermarkets generate more than $140 million in annual turnover supported by robust performing specialty tenants demonstrating considerable month-on-month growth.

Roselands-Food-Precinct
The centre’s $90 million redevelopment saw a significant upgrade to the ground floor fresh food precinct, known as ‘The Markets’. Image: Supplied.

The centre services an established and densely populated trade area of 481,260, projected to increase to 530,970 persons by 2031.

With a significant retail spending capacity currently at $6.5 billion, it is expected to increase by $2.5 million within ten years with growth forecasted at 3.3% per annum.

Interest in retail

Mr Rooney said 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.

Just recently, UniSuper and Cbus Property partnered with AMP Capital to take majority ownership of Pacific Fair (QLD) and a half stake in Macquarie Centre (NSW) in a $2.2 billion deal.

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Simon Rooney negotiated the Roseland Shopping Centre sale on behalf of CIP Asset Management. Image: CBRE.

Mr Rooney said, “retail is the real mover at present, with at least another $2 billion in assets expected to change hands this year.

“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.”

Mr Rooney expects, the return of institutional capital into the sector, combined with strong private investor demand, will see heightened transactional activity into next year.

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