Telstra Super has sold its half stake in a shopping centre in Australia to Hong Kong-based real estate investment firm, JY Group, for A$120.5m (€80.6m).
The remaining 50% interest in Carlingford Court Shopping Centre in Sydney’s North is held by Australian listed shopping centre owner Vicinity Centres.
Carlingford Court is the Hong Kong buyer’s second co-investment with Vicinity, following the purchase of a half stake in the Roselands Shopping Centre in Sydney’s southwest for A$167m last October.
The Hong Kong group also owns Wollongong Central Shopping Centre, 85km south of Sydney, which it acquired with the Australian property investor Haben last year from GPT Group for A$402m.
The latest acquisition boosts the value of the JY Group’s Australian assets to almost A$1.8bn.
CBRE’s head of retail capital markets for Asia-Pacific, Simon Rooney, who negotiated the transaction on behalf of Telstra Super, said the sale was struck on a passing yield of approximately 6.3% and a fully leased yield of 6.5%.
“The result demonstrates continued demand for quality, metropolitan sub-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,” he said.
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