Woolworths Group has completed the sale of 10 neighbourhood shopping centres to an Asian investor for more than $500 million, as part of its property recycling strategy.
CBRE managed the divestment on behalf of the retail giant, with senior retail executives James Douglas, Joe Tynan and Michael Hedger. Asian investment group Forest Endeavour secured the eastern seaboard portfolio.
According to Woolworths, the deal would position Forest Endeavour as a key player in Australia’s highly sought-after residential shopping centre sector.
“This major transaction provides a highly beneficial outcome for both parties. It crystallises and returns development proceeds for Woolworths, while delivering Forest Endeavour 10 new, high-quality assets offering growth potential in the one transaction,” said Douglas.
The portfolio comprises assets such as Kiama Fair and Doolandella, alongside other underdeveloped and nearing completion sites, primarily across metropolitan areas and key satellite cities from Queensland to Tasmania. When fully developed, it will have a total lettable area of more than 50,000sqm.
Woolworths’ director of property development, Andrew Loveday, said, “We build and develop high-quality retail destinations that bring communities together, and we’re pleased to have leveraged this unique opportunity.”
CBRE’s Tynan also noted, “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, providing Forest Endeavour with resilient and growing returns in the future.”
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