Woolworths sells 10 assets to billionaire family
Woolworths Group has sold 10 retail investments in one line – part of a program to recycle real estate capital.
Forest Endeavour, led by Taiwan’s Lin family, also the owner of developer and investment house Shayher Group, is the buyer – for more than $500 million.
In New South Wales, Queensland, Tasmania and Victoria, the portfolio includes a mix of neighbourhood shopping centres and near-complete malls.
All are anchored long term to Woolworths.
“This major transaction provides a highly beneficial outcome for both parties…it crystalises and returns development proceeds for Woolworths, while delivering Forest Endeavour ten new, high quality assets offering growth potential in the one transaction” CBRE’s James Douglas, who brokered the deal with Joe Tynan and Michael Hedger, said.
Long leasebacks
Operational assets in the portfolio include Kiama Fair, in southern NSW and Doolandella in Brisbane (continues below).
Soon to be completed assets are in Marsden Park and Austral, in Sydney.
Complexes due for completion after that are in Chelsea Heights – a former Mitre 10 at 1-23 Wells Road, in Melbourne, and Belmont, Newcastle.
“The performance of the completed supermarkets is exceptional and the forecast sales of the centres under development will see them deliver meaningful sales in their respective catchments when opened and provide Forest Endeavour with resilient and growing returns in the future, with next to no capital leakage given the newly constructed nature of the assets.” Mr Tynan said.
The deal comes three months since we reported Forest Endeavour bought the Paradise Centre on the Gold Coast from the Abu Dhabi Investment Authority.
That sale was worth c$370m.
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