50% Stake in Sydney’s Warriewood Square sold by CBRE

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Oct 9, 2024

50% Stake in Sydney’s Warriewood Square sold by CBRE

50% stake in Sydney’s Warriewood Square sold to Sydney based JY Group negotiated by CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney on behalf of ISPT.

CBRE

50% Stake in Sydney’s Warriewood Square sold by CBRE
CRBE

50% Stake in Sydney’s Warriewood Square sold by CBRE

The Sydney based JY Group has further expanded its Australian shopping centre portfolio with the $135.5 million acquisition of a 50% interest in Sydney’s Warriewood Square.

The purchase lifts the value of JY Group’s Australian shopping centre assets to over $2.8 billion following the acquisition of Melbourne’s Roxburgh Village which settled earlier this year and the recent acquisition of a 50% stake in Perth’s Westfield Whitford City.

CBRE’s Head of Retail Capital Markets – Pacific, Simon Rooney was exclusively appointed to steer the on-market sale process on behalf of ISPT.

Mr Rooney noted, “This strong transaction result reinforces increasing investor demand and liquidity for well-located, high quality metropolitan sub-regional assets demonstrating outstanding trading performance, underpinned by exceptional investment fundamentals and a secure tenancy profile such as that offered at Warriewood Square”.

“The Warriewood transaction completes approximately $1.3 billion in partial 50% stakes changing hands since June 2024, including Westfield West Lakes – SA ($174.75m - 50%), Westfield Tea Tree – SA ($308m - 50%), Claremont Quarter ($207m - 50%) – WA, Lakeside Joondalup – WA ($420m - 50%) and Westfield Whitford City – WA ($195m - 50%),” Mr Rooney noted.

Co-owned and managed by Vicinity Centres, the strong performing sub-regional centre is located 29km north-east of the CBD on Sydney’s affluent Northern Beaches.

Mr Rooney said the ISPT offering had attracted competitive interest, primarily from private based capital, given the centre’s prime metropolitan Sydney location, recent capital investment works of $85 million completed in 2016 together with the robust performance of the major tenants.

Woolworths, Coles, Aldi and Kmart provide a leading major tenant WALE by income of 11.1 years with combined annual sales in excess of $135m.

There are four mini majors, including Rebel, Cotton On Mega and JB Hi-Fi, alongside 97 specialty stores and kiosks.

The centre benefits from being the dominant retail destination within an established and affluent trade area of 177,918 residents, with primary trade area retail spending per capita 33% above Greater Sydney average.