Opportunity
- Land value accounted for ~80% of the purchase price, effectively acquiring the improvements well below replacement costs
- Large landholding in a defensive location
- Multi-tenancy profile provided diversity of income
Management Value Add
- Effective & efficient lease reset of 50% NLA, through a series of complex lease surrender, new lease and renewals, eliminating the 8% vacancy at purchase and significantly extending the WALE from 3.5 to 5.3 years
- Corrected the flaws in leasing which triggered the exit from the previous
institutional vendor and brought back the institutional appeal - Sold to AMP, returning 1.5x money multiple
- Delivered 23.3% IRR to investors (relative to target IRR of 12%)
© Centennial 2021