Revelop, Stockland trade Balgowlah mall
Revelop has snapped up a northern beaches strata shopping centre from Stockland – outlaying $155 million.
Now expected to be renamed, Stockland Balgowlah traded after an off-market campaign.
The result comes in a touch lower than the ($157m) June 30, 2023, valuation, which assumed a 5.5 per cent capitalisation rate – and a $9.1m discount on its appraised price 12 months earlier.
It also ends 23 years of ownership for Stockland which last refurbished in 2007.
JLL’s Sam Hatcher and Nick Willis were the agents.
Stockland Balgowlah
Revelop is buying Stockland Balgowlah with a low weighted average lease expiry – less than four years.
Containing 12,802 sqm, part of a larger mixed use development, it is also one of the least energy efficient malls in Stockland’s portfolio – with a 2-star energy rating.
Coles is the anchor, its lease for 4443 sqm expires in mid-2029.
Mini-majors include Harbord Growers Market and Fitness First Platinum.
There is also a medical centre, 54 specialty stores and 736 car parks (story continues below).
Valuable catchment
Stockland Balgowlah’s main trade area captures 57,931 expected to rise to 59,211 by 2026.
The average households earns $165,479 – 32.2pc up on the Greater Sydney average ($125,158).
Families with dependent children comprise 51.5pc of the mix.
The average customer age is 39.5 years.
“Core metropolitan assets within proximity of Sydney CBD rarely trade and continue to be highly sought after by a broad base of capital, due to their irreplaceable nature,” Mr Hatcher said.
“Stockland Balgowlah is a dominant centre situated in the northern beaches of Sydney, just two kilometres from Manly,” he added.
The deal comes a fortnight since we reported ISPT sold Eastgate Bondi Junction – like Stockland Balgowlah, a strata titled component of a mixed-use residential based complex, after 29 years, to Charter Hall and a Mercer managed fund for $125m reflecting a 6.24pc market yield.
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