Woolworths, Australia’s largest supermarket chain, has sold a 10-store national supermarket portfolio to Taiwan-based investment group Forest Endeavour for more than A$500m €300m).
The deal establishes Forest Endeavour as a key player in Australia’s highly sought after neighbourhood shopping centre sector. The group, controlled by a Taiwanese billionaire family, has expanded its retail and hospitality holdings with the A$370m purchase of the Paradise Centre in Surfers Paradise on the Gold Coast in Queensland.
Andrew Loveday, Woolworths’ director property development, said: “We build and develop high-quality retail destinations that bring communities together and we’re pleased to have leveraged this unique opportunity.”
The divestment is part of Woolworths’ ongoing property recycling strategy, the company said.
CBRE senior retail executives James Douglas, Joe Tynan and Michael Hedger negotiated the sale on behalf of the vendor.
Douglas said: “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 Tynan said: “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.”
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