Invesco’ Forestway Shopping Centre was sold to local Paramatta based investor Revelop, in an off-market transaction brokered by JLL’s Nick Willis and Sam Hatcher.
The 9,600sq m Frenchs Forest shopping centre, located 13 kilometres north of Sydney’s CBD, is anchored by Aldi, Woolworths, McDonald’s and 37 specialty stores.
First developed in 1966, Invesco acquired the property in 2015, with the recent sale recording a yield of 5.37 per cent.
The sale comes just weeks after the Northern Beaches Council reportedly rejected Invesco’s $114m redevelopment proposal, which called to clear a portion of the two-hectare block for a multi-level complex with office, retail, a childcare centre, medical complex, gym and rooftop park.
Council claimed Invesco’s application, submitted two years earlier, was not in the public interest as it would add traffic, undermine the area’s character and be contrary to community expectation.
JLL director retail investments Nick Willis said the sale reaffirms investors confidence and the demand for well located non-discretionary based retail assets.
“We saw retail investment volumes constrained some 40 per cent in 2020 due to the implications of COVID,” he told ANZPJ.
“However we are now continuing to see investors move up the price curve as the markets have reopened and confidence in income streams build.
“The sale of Forestway Shopping Centre follows over $700million worth of retail our team has transacted in Sydney over the last 12 months.
“This includes larger scale transactions like Stockland Baulkham Hills ($141million), Auburn Shopping Centre ($130million) and The Pines in Victoria ($155million).”
Revelop purchased the property, with the local investor group now precinct’s biggest private landowner.
The Parramatta-based investor, known for both commercial investments and residential development, has plans to improve the parking, appearance and tenancy mix at the mall.
Among its development projects, Revelop has previously partnered with co-living operator Hmlet on four facilities in Sydney’s west, Northern Beaches and Petersham in Sydney’s inner west.