Invesco sells Forestway after failed planning bid
Invesco has sold Sydney’s Forestway Shopping Centre – its first Australian retail investment – for c$100 million after a failed planning bid.
The Atlanta-based vendor paid GPT Wholesale Shopping Centre Fund $112m in 2015.
JLL’s Sam Hatcher and Nick Willis were the agents this time around.
Their deal, being reported by the AFR to Revelop, is being struck on a 5.75 per cent yield.
Forestway is in Frenchs Forest, about 13 kilometres north of the city.
Failed planning bid
Owning Forestway makes Revelop the precinct’s biggest private landowner.
The acquisition comes a week after The Manly Daily reported Northern Beaches Council rejected a $114m redevelopment proposal which Invesco put forward two years ago.
Under that plan, a portion of the two hectare block would have been cleared for a multi-level complex with office, retail, a childcare centre, medical complex, gym and rooftop park.
It would also have more than doubled the number of car parks to 740.
Developed in 1966, Forestway contains 9600 square metres of area including in eight mezzanine-level office suites.
Council said Invesco’s application was not in the public interest, specifying it would add traffic, undermine the area’s character and be contrary to community expectation (story continues below).
Revelop
Parramatta based Revelop is a diversified investor – in June it acquired an essential services-backed property at North Turramurra, about 10 kms from Frenchs Forest.
The group also value-adds – a year ago it purchased Adelaide’s unrenovated Newton Village from Con Makris.
It builds new too – including presently, co-living projects in partnership with Hmlet.
The company is expected to expand Forestway and introduce new tenants.
Forestway was Invesco’s first Australian retail investment
Forestway is anchored by two supermarkets – Aldi and Woolworths – and a McDonald’s.
There are also 37 specialty stores and two pad sites.
Invesco’s Asia Pacific portfolio is estimated to be worth about $4 billion.
It recently paid Brookfield $400m for a half-stake in Chevron’s Perth headquarters, which is under construction.
