Hong Kong-based private equity firm JY Group has exchanged contracts to acquire a 50 per cent interest in Westfield Marion, Adelaide’s only super regional shopping centre, for $670 million, in one of Australia’s largest retail property transactions of the past year.
The acquisition has boosted JY Group’s total assets under management to $4.9 billion with the property expanding its commercial property footprint into South Australia for the first time.
JY Group, which currently has assets in NSW, Victoria, Queensland and WA, has become a major player in the sector since it was established by investment advisory veteran Kai Zhan in 2019.
The Westfield Marion stake was acquired from Singapore-based investment group Cuscaden Peak following an expressions-of-interest campaign undertaken by CBRE’s Simon Rooney and JLL’s Nick Willis and Sam Hatcher.
The deal comes on the heels of JY Group’s acquisition of a 50 per cent interest in Bankstown Central for $318.6 million late last year.
It also represents its second partnership with Westfield retail property owner Scentre Group (ASX: SCG) following the acquisition of a 50 per cent stake in Perth’s Westfield Whitford City for $195 million in 2024.
“The sale process generated a significant level of both domestic and offshore engagement from a wide range of capital sources, including several institutional investors,” says 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 occupies a 22.8ha freehold site at the junction of three major arterial roads.
The property is zoned Urban Activity Centre, providing the owners with potential short, medium and long-term mixed-use development opportunities.
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