Vicinity Centres has exchanged unconditional contracts for the divestment of three non-strategic assets – Elizabeth City Centre (SA), Roselands and Carlingford Court (NSW) – with proceeds totalling $457 million.
Vicinity has exchanged unconditional contracts for the divestment of a 50% interest in Elizabeth City Centre in South Australia, to Nikos Property Group. The transaction extends Vicinity’s strong working partnership with Nikos Property Group, with whom Vicinity already co-owns and manages Broadmeadows Central in Victoria and Colonnades in South Australia.
Vicinity’s CEO and Managing Director, Peter Huddle said, “We are delighted to further strengthen our partnership with the Nikos Property Group and continue driving mutual value via Vicinity’s expert retail property management platform. Together, the Nikos family and Vicinity share significant experience in retail property investment, and I, together with the Vicinity team, look forward to delivering the next phase of growth and sustained returns on our shared portfolio of assets.”
Vicinity has also exchanged unconditional contracts for the divestment of Vicinity’s 50% interest in Roselands, as well as Vicinity’s 50% interest in Carlingford Court, both in New South Wales.
Huddle added, “Today’s announcement demonstrates continued execution of our investment strategy, that is anchored by the curation of a stronger and more resilient retail asset portfolio, whilst preserving our strong balance sheet and credit metrics.
“With important developments in progress at Chadstone and Chatswood Chase and following the acquisition of Lakeside Joondalup in Western Australia in August 2024, we set a target of $250 million of asset divestments in FY25. Since then, we have been pleased with the level of interest in, and pricing offered for a number of our retail assets. Consequently, we have exceeded our initial divestment target by more than $200 million. On a standalone basis, the $457 million of proceeds from asset sales will reduce gearing by 230 basis points.”
The half shares in Sydney’s Roselands Centre and Carlingford Court for a combined $287 million, was exclusively negotiated off-market by CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney. 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,” 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,” said Rooney.
Roselands Centre and Carlingford Court have a combined gross lettable area (GLA) of approximately 96,761m2, generate exceptional centre turnover totalling more than $630 million per annum, and occupy significant high-profile metropolitan sites.
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 63,631m2 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.
Carlingford Court is a large, four-level sub-regional centre positioned 18km north-west of the Sydney CBD.
It has a total GLA of 33,130m2 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 a 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 divestments of Roselands and Carlingford Court are expected to settle on 18 February 2025 and 1 April 2025, respectively. The divestment of Elizabeth Centre is expected to settle on 30 June 2025.
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