Greenpool Capital invests in $82m Forest Lakes Shopping Centre

Global funds giant Savills Investment Management has partnered with local investment firm Greenpool Capital on the $81.5 million acquisition of a supermarket-anchored shopping centre in Perth’s south-eastern suburbs, as investors gravitate towards convenience-focused retail centres.

The 14,577 sq m Forest Lakes Shopping Centre in Thornlie, anchored by Coles, Woolworths and Aldi supermarkets, sold on a passing yield of 5.9 per cent. Fully leased up the mall would return 6.5 per cent.

Alongside the three supermarkets, the centre offers 42 speciality shops, kiosks and pad sites on a 6.6 ha land holding at 115 Murdoch Road. It sold with a weighted average lease expiry of eight years.

The vendor was DRH Property Investments, a company associated with the Russell family, founders of Don Russell Homes.

It is the second notable acquisition in the past eight months for Greenpool Capital, which was founded in 2015 by former Westfield WA state manager Brad Osborne.

In November, Greenpool Capital partnered with listed real estate financier Qualitas to acquire the remaining 50 per cent stake in the Gold Coast’s Runaway Bay Centre for $132 million, to assume full ownership of the mall.

Greenpool also partnered with Qualitas on the 2020 acquisition of North Adelaide Village for $50 million.

Mr Osborne said the Forest Lakes mall sold 97 per cent occupied and generated moving annual turnover of $128.8 million.

“Neighbourhood shopping centres continue to prove resilient in a post-pandemic era, offering superior risk-adjusted returns for investors,” he said.

The mall investment will be offered to wholesale investors, Mr Osborne said.

Greenpool’s joint venture partner on the Perth mall deal, Savills IM is a global real estate investment powerhouse managing €26.8 billion ($39 billion) of assets across more than 40 funds and mandates.

In May, Savills IM sold The Station Oxley neighbourhood centre to Sydney-based fund manager Haben for about $47 million.

The sale of Forest Lakes Shopping Centre was brokered by CBRE’s Simon Rooney and James Douglas. Mr Rooney said there had been strong interest from listed and unlisted institutional capital and private investors.

“The interest in Forest Lakes Shopping Centre underlines the strong demand for non-discretionary assets despite rising interest rates,” he said.

“There remains strong capital demand and therefore liquidity for quality retail assets, particularly assets which are tightly held.”

*The above is an extract of an article originally published by the Australian Financial Review under the title “Global funds giant invests in $82m Perth mall”, published on 27 July 2022.