An iconic Sydney shopping centre has been sold for $155 million to private owners, who have hosed down locals’ fears that the site will be redeveloped.
ASX-listed developer Stockland offloaded the 12,802 square metre Stockland Balgowlah Shopping Centre on the northern beaches to private family firm Revelop earlier this month.
Stockland Balgowlah, which houses more than 70 specialty stores and food outlets, as well as a Coles, Aldi, Kmart and Fitness First, started life in 1961 as The Totem — the first
“American-style” mall on the northern beaches, featuring two Native American totem poles at its front and rear entrances.
The original centre included a Franklins supermarket, a bowling alley, squash courts and a childcare centre, the Manly Daily reported.
In 2002 it was sold by private investor Tony Delasala to property giant Stockland, which demolished the centre and rebuilt it in 2009, alongside 240 residential apartments as part of a luxury mixed-use development.
Its new owners Revelop, a western Sydney-based property developer founded by cousins Charbel Hazzouri and Anthony El-Hazouri, have described the site as a “a trophy asset that has strong synergies with our surrounding centres”.
The deal only includes the retail and commercial assets.
“In the short term we plan to bring a new mix of tenancies and eateries to further strengthen the performance of the centre,” Mr Hazzouri told the Manly Daily.
He described it as a “dominant retail hub” with “strong performance … attributable to the affluent demographic surrounding the asset”.
Revelop says the centre attracts more than 3.5 million customers annually.
The popular shopping centre has been described as a ‘trophy asset’. Picture: Supplied
Speaking to the local news site Manly Observer, Mr Hazzouri reassured residents that the new owners had no plans — or ability — to redevelop the site into more apartments.
“This is a great community shopping centre and there will be no redevelopment of the site, such as turning it into residential units,” he said.
“We want to improve on what is already there. Make some changes to the interior and add in more food options.”
He added the new owners would welcome feedback from customers on what else was needed. “We will also be looking to the community on what new name to give the centre,” he said.
The Manly Observer noted there was strong support on social media to bring back The Totem — a name still used by many long-time customers.
Revelop last year forked out $158 million for Mirvac’s Stanhope Village in Sydney’s northwest, and in 2022 purchased the Tramsheds complex in inner-city Forest Lodge for $52 million from the group.
In 2021 Revelop purchased the ageing Forestway Shopping Centre in the northern beaches for $100 million and is spending more than $25 million to refurbish the site.
It was originally the Totem Shopping Centre. Picture: Northern Beaches Library
The firm is investing heavily in smaller neighbourhood shopping centres — it now owns 25 across NSW, Victoria and South Australia — which are tipped to face growing competition from private investors as interest rates stabilise.
Speaking to The Australian last year after the Stanhope Village purchase, Mr Hazzouri said Revelop’s acquisition and development of shopping centres followed the same theme.
“Our centres give back to the community by ensuring they are an enjoyable and notable meeting place,” he said.
“The future of retail is much like its humble beginnings — the focus is on single-storey, simple-to-navigate and easy-to-use centres. The mega centres that have evolved in the last 30 years have a purpose, but the place of medium to large convenience centres, neighbourhood or subregional, primarily 5000-20,000 square metres, offer everyone the best experience.“
JLL Retail Investments, which managed the sale of Stockland Balgowlah, said there was a considerable surge in private investor interest in retail in 2023 with $850 million worth of shopping centre deals, 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,” JLL’s Nick Willis said in a statement.
news.com.au
Frank Chung
13/03/2024