Developer Revelop continues its winning streak with a major acquisition from Stockland.
The Sydney development company has purchased Stockland Balgowlah, a shopping centre in the Northern Beaches area of Sydney.
The 12,802sq m site was developed by Stockland in 2009 and is part of a larger mixed-use development.
It is anchored by Coles and Harbord Growers Market, with more than 70 other retail outlets across food and drink, fashion and healthcare.
Revelop co-founder Charbel Hazzouri said that the “trophy asset” had strong synergies with its existing centres and was a rare find.
Revelop is investing heavily in its retail portfolio alongside a host of other sectors, including the Forestway Shopping Centre in the Northern Beaches, adding new tenants, as well as starting construction on its 10,000sq m Caldrewood neighbourhood shopping precinct.
▲ According to Revelop, median household incomes in the radius of Stockland Balgowlah sit 290 per cent above the Sydney metropolitan average.
The sale of Stockland Balgowlah was managed by Nick Willis and Sam Hatcher from JLL Retail Investments Australia and New Zealand.
Neighbourhood retail centres are proving to be a highlight in an already strong sector, with predictions that they will continue to grow at pace.
JLL said there was a considerable surge in private investor interest in retail in 2023, with $850-million worth of shopping centres deals that year, double the prior year.
“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,” Willis said.
The Urban Developer
Clare Burnett
08/03/2024