A half share in South Australia’s largest shopping centre, Westfield Marion, has sold for $670 million.
The acquisition by commercial real estate investors JY Group, one of the largest retail property transactions in Australia, has taken JY’s asset-under-management portfolio to $4.9 billion since 2019.
The expressions of interest campaign was managed by representatives from CBRE and JLL, on behalf of the Singapore-based sellers, Cuscadean Peak. It follows JY’s recent acquisition of a 50 per cent stake in Bankstown Central and a 50 per cent stake in Westfield Whitford City.
“The sale process generated a significant level of both domestic and offshore engagement from a wide range of capital sources, including several institutional investors,” said CBRE’s head of retail capital markets for the Pacific region, Simon Rooney.
“Fortress assets of the calibre of Westfield Marion remain highly sought-after, in this case underpinned by exceptional centre performance, the ability to partner with Scentre Group, Adelaide’s compelling yield spread relative to Sydney and Melbourne, and South Australia’s favourable property tax regime.”
Located 13km south-west of the Adelaide CBD, Westfield Marion sits on a 22.8ha freehold site. Its total gross lettable area of around 138,000sqm is anchored by David Jones, Myer, Woolworths, and Coles. The mall draws around 12.5 million customers annually.
“The opportunity to acquire an ownership stake in the super-regional sub-sector is rarely afforded to the public market,” said Nick Willis of JLL. “These assets are tightly guarded – they exhibit fortress-like fundamentals that are virtually impossible to replicate.
“The sale of Westfield Marion presented a rare opportunity to enter this sub-sector and secure a stake in one of Australia’s premier performing shopping centres.”
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