Opportunity
- Poorly presented centre with vacancy in the specialty tenancies, a loss-making car park and high outgoings, which would benefit from active management
- A strongly performing Coles with a turnover of $40m+ anchored 66% of cash flow and formed a good foundation to reposition the specialty tenancies
- The Stratum nature adds complexity to manage and reposition while working in tandem with other stakeholders, which deterred many buyers
- Flexible exit options – strata sell down to unlock the high value embedded in the Coles tenancy or selling in one line
Management Value Add
- Intensive management which turned around the car park rationalised outgoings and repositioned leases on ~40% of NLA
- Sold on-market to a passive private investor and realised a 28.1% IRR (relative to a target IRR of 13%)
© Centennial 2021
