Retail Property Trust No. 1
2865 Albany Highway
Kelmscott
Western Australia
1244 Marmion Avenue
Currambine
Western Australia
Investment summary
Investment type : Equity
Sector : Retail (shopping centres)
Location : Western Australia
Acquisition price (land and buildings) : A$70,350,000
On completion value : $130,940,000
Investment rationale
The Ray White Invest Retail Property Trust No.1 (the Trust) was established in December 2007 to acquire, under a joint venture with the Blair Group, two retail shopping centres that are anchored by Woolworths.
The Trust will provide investors with income and capital returns through the acquisition, refurbishment, repositioning and or development of, and ownership of, the retail shopping centres.
The investment strategy of the joint venture is to:
- Complete the acquisition of the properties.
- Undertake development works to reposition the properties over a 18 to 28 month period.
- Actively manage the properties throughout and post completion of the development works.
- Regularly review the ongoing ownership of the properties, with the intention of holding them for the medium to longer term.
At Currambine, the joint venture plans to undertake a major expansion and refurbishment of the existing shopping centre and to develop the parcel of vacant land to maximise retail turnover and achievable rentals. Upon completion of the development works, there will be an additional 9,000m2 of retail space, including a 1,400mē Dan Murphy’s liquor outlet.
At Kelmscott, the joint venture plans to refurbish the property and deconstruct part of the existing mall and to relocate a number of existing specialty tenancies to open up the property and to improve visual activity in and around the shops and reduce operating costs. Further, the development works will result in the existing Woolworths supermarket being expanded by 200 mē to a full line 3,116 mē supermarket.
The Properties present opportunities to create material value, through the application of quality retail development skills. For this reason, we think that the Blair Group is an excellent partner for the Trust in this venture. The Blair Group, headed by Jason Blair, has established a favourable reputation with Woolworths having consistently demonstrated a unique ability to maximise the retail experience for shoppers and retailers and deliver on its projects.