Billionaire Outlays $500m for 10-Asset Woolworths Portfolio

Woolworths Group has offloaded a 10-asset national supermarket portfolio for more than $500 million as part of its ongoing property recycling strategy.

Asian investment group Forest Endeavour acquiring the eastern seaboard portfolio in a transaction negotiated by CBRE’s senior retail executives James Douglas, Joe Tynan and Michael Hedger.

The deal is a significant expansion for Forest Endeavour into Australia’s neighbourhood shopping centre sector, which continues to attract institutional and private capital thanks to its resilient, supermarket-anchored income streams.

The portfolio is underpinned by Woolworths Group, a top 20-ranked company on the Australian Securities Exchange, providing strong covenant support across the assets.

The centres are predominantly across metropolitan and key satellite city markets from Queensland to Tasmania.

Assets in the portfolio include established centres such as Kiama Village in southern New South Wales and Doolandella in Queensland (pictured at top), as well as recently completed and coming developments at Marsden Park and Austral in Sydney.

Additional assets under development include centres at Chelsea Heights in Victoria and Belmont in Newcastle.

Once fully developed, the portfolio will comprise more than 50,000sq m of gross lettable area.

Forest Endeavour, backed by the billionaire Lin family of Taiwan, is growing its exposure to Australian retail and hospitality assets, and is understood to be linked to the Shayher Group. Recent acquisitions include the Paradise Centre and Novotel Surfers Paradise, both on the Gold Coast.

CBRE senior executive James Douglas said the transaction had delivered a strong outcome for both parties.

▲ Kiama Village in News South Wales was among the assets transacted in the $150-million deal.

“This major transaction provides a highly beneficial outcome for both parties,” he said.

“It crystalises and returns development proceeds for Woolworths, while delivering Forest Endeavour 10 new, high-quality assets offering growth potential in the one transaction.”

Woolworths director of property development Andrew Loveday said the sale aligned with the group’s broader strategy.

“We build and develop high-quality retail destinations that bring communities together and we’re pleased to have leveraged this opportunity,” he said.

CBRE’s Tynan said the portfolio combined strong existing performance with future growth potential.

“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,” he said.

“They will 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.”