Revelop have announced its successful purchase and settlement of Stockland Balgowlah. The 12,802m2 centre was developed by Stockland in 2009 and forms part of a large mixed-use development.
Stockland Balgowlah is a dominant retail hub situated in the northern beaches of Sydney, just 2km from Manly. The centre is anchored by Coles and Harbord Growers Market, further supported by Fitness First Platinum and more than 70 specialty shops across dining, fashion, and healthcare.
The centre’s strong performance is attributable to the affluent demographic surrounding the asset. The median household incomes within a 3km radius of the Stockland Balgowlah are among the highest in Australia and sit 290% above the Sydney metropolitan average.
Charbel Hazzouri, Founding Director Revelop said, “We are very pleased to bring Stockland Balgowlah into our growing portfolio, it is a trophy asset that has strong synergies with our surrounding centres. Assets of this calibre are rarely made available in Sydney, and we look forward to working with the tenants to continue to deliver excellent service to the local northern suburb’s community.”
Anthony El-Hazzouri, Founding Director Revelop said, “Stockland Balgowlah will have a great synergy with our existing portfolio, including Forestway Shopping Centre on the northern beaches.
Forestway is currently going through a significant refurbishment and expansion, and we will be making some major announcements in the coming weeks with new tenants arriving. Given how tightly held the market has become in retail, we started acquiring more development opportunities, including our recent commencement of construction at Calderwood which will accommodate a brand new state-of-the-art 10,000m2 neighbourhood centre.”
The transaction further demonstrates investor demand in Retail Capital Markets, following the sector announcing it was the most traded of all sectors in Australia in 2023. Stockland Balgowlah was sold by Nick Willis and Sam Hatcher from JLL Retail Investments Australia & New Zealand.
Nick Willis said, “Core metropolitan assets within close proximity of Sydney CBD rarely trade and continue to be highly sought after by all capital given their irreplaceable nature.”
JLL noted that there was a significant surge in private investor participation during the fourth quarter of 2023 for retail property.
“In December alone, more than $850 million shopping centres in Australia were transacted to private investors, almost double the prior year and significantly above the five-year average. These investors along with unlisted funds and syndicates are well capitalised and looking to allocate to the sector, however, available investment supply remains subdued, this is driving increased competition for quality assets,” said Willis.
Sam Hatcher noted “For the first time since 2004, between office, industrial and retail capital markets, retail investments recorded the largest market share in transaction volumes. The underlying fundamentals of retail investments have continued to improve. The lack of new floor space supply and strong population growth, alongside attractive returns in comparison to other traditional asset classes are attracting domestic and international investors alike.”
SCN
07/03/2024