Revelop has acquired a portfolio of three Sydney neighbourhood shopping centres for $126.3 million, amid generational ownership transitions and growing institutional appetite.
The portfolio comprises Kareela Village, Ingleburn Village and Quakers Court. The assets comprise almost 20,000sqm and include two Coles supermarkets and one Woolworths supermarket, together with 57 specialty stores. The centres had been held by family owners for about 30 years and had rarely been traded.
In Sydney, there are 160 neighbourhood shopping centres, of which 85 are privately held. Many of these assets have been owned across generations and have seen limited trading activity.
The acquisition expands Revelop’s presence in Sydney, where investment demand remains strong and available supply is limited. The company owns 31 operating centres in the city and has a further nine projects under development. It also has assets in Victoria and SA.
Revelop co-founder and director Charbel Hazzouri said sourcing assets in Sydney had become more difficult and the portfolio would support asset improvement and long-term value creation.
Co-founder and director Anthony El-Hazouri said the acquisition aligned with the company’s strategy in convenience retail.
“These centres offer exactly what today’s consumers demand, convenience, quality amenity and strong retail fundamentals,” he said.
The transaction was managed exclusively by JLL’s Sebastian Fahey, Nick Willis, David Mahood and Sam Hatcher. According to JLL, neighbourhood shopping centres have attracted investor interest because of their income profile.
Sebastian Fahey said ownership transitions among long-held family assets were being observed across the market, alongside continued demand for assets in this segment.
Nick Willis said institutional capital had returned to the sector, while transaction volumes had fallen about 16 per cent year to date, reflecting constrained investment supply.
David Mahood said retail property remained the most traded asset class in Australia last year, indicating continued investor participation in the sector.
After a record year in which more than $13.5 billion of retail transactions were completed, according to JLL data, transaction volumes this year are running about 80 per cent below the five-year average.
In NSW, neighbourhood transaction volumes remain below historical averages, reflecting the tightly held nature of the market.
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