At 6.6% yield, Myer Centre Adelaide sells at $288 million to YTL Starhill Global

Myer Centre Adelaide, the largest CBD shopping mall in the city, has been sold for $288 million through JLL.

It comprises a retail centre, three office buildings and four basement levels with 467 carpark lots.

It has a total area of 716,000 square feet in the city’s retail area along Rundle Mall, the city’s only retail pedestrian street which attracts 24 million shoppers annually.

The Singaporean REIT, YTL Starhill Global REIT Management Limited, as manager of Starhill Global Real Estate Investment Trust secured the freehold property located at 14- 38 Rundle Mall.

Its net income sits at $19 million.

Ho Sing, chief executive officer of YTL Starhill Global, said the asset fits its investment strategy of building a quality portfolio of properties in prime locations.

"At the purchase price of A$288.0 million, Myer Centre Adelaide provides an attractive yield of 6.6%, is 2.8% accretive to our DPU and is below the current replacement cost," he said.

It was listed two months ago by Novion Retail Partnership with price expectations for close to $270 million through JLL's Head of Retail Investments for Australia, Simon Rooney.