Parramatta, NSW

RETAIL
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%)