Retail property group Vicinity Centres has listed three of its shopping complexes for sale, seeking to capitalise on a red-hot market for subregional malls and raise about $250 million.

The sale, being managed by CBRE, comes amid surging investor interest in mid-sized centres anchored by supermarkets and discount department stores.

The three assets on the block are Gympie Central and Whitsunday Plaza in Queensland, and Armidale Central in regional New South Wales.

Together, they feature major tenants such as Woolworths, Big W, Kmart and Harvey Norman, with combined turnover exceeding $440 million.

The move is part of CEO Peter Huddle’s (pictured below) broader strategy to streamline Vicinity’s $23 billion portfolio by offloading smaller, non-core assets while funnelling capital into high-end redevelopment projects.

These include the Chatswood Chase Sydney revamp and ongoing upgrades to Melbourne’s Chadstone Shopping Centre, Australia’s largest mall.

It follows a strong financial year for Vicinity. The ASX-listed group recently reported an 83.6% jump in full-year profit to just over $1 billion, with funds from operations at the top end of guidance. The company has also guided further growth for FY26, forecasting higher earnings and distributions.

The sale is expected to attract attention from both emerging retail property funds and heavyweight players such as Charter Hall, which has been expanding its footprint in the subregional retail space.

Vicinity’s latest divestments continue a trend of recycling capital from smaller malls into flagship projects that blend luxury retail, dining and mixed-use spaces.