Vicinity Centres has settled its $120 million sale of a half share in Sydney’s Carlingford Court to the Last Mile Retail Logistics Fund managed by HMC Capital amid resurging buyer interest in shopping centre investment opportunities.
CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney exclusively negotiated the off-market transaction, which also included a 50% interest in Sydney’s Roselands Centre for a combined $287 million. The remaining interests in both shopping centres are owned by the Sydney-based JY Group.
“The value proposition for larger sub-regional and regional shopping centres has become increasingly compelling for investors, as we continue to witness more robust demand from both domestic and offshore institutional investors for high quality retail opportunities. This has translated into increasing retail transaction volumes,” Rooney said.
“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, larger retail 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,” Rooney noted.
Located 18km north-west of the Sydney CBD, Carlingford Court is a four-level, 33,130m2 sub regional shopping centre anchored by strong performing dual supermarkets Woolworths and Coles, a Target DDS, with key mini-majors Fitness First, Bing Lee, Tongli Supermarket and The Reject Shop – with major and mini-major tenants representing of 75% of the GLA.
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/m2.
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 occupies a high profile 37,272m2 freehold site, with outstanding frontage to Pennant Hills Road, a major arterial roadway connecting north-western Sydney via the M2, M4 and F3 Motorways and the NorthConnex.
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