Case Study

1155 High St, Armadale

A modern mixed-use building comprising retail and office suites, requiring intensive leasing strategies and a progressive management program.

1155 High Street, Armadale is a modern building comprising six retail shops, three office suites and basement parking for 19 cars in the heart of the famous Armadale retail strip.

Project Strategy

Reposition asset via intensive leasing and mangement.

Target IRR

27.0% p.a.

IRR Achieved

36.4% p.a.
(12 month project timeframe)

Transaction Analysis from Acquisition to Disposal

									
					Acquisition				

					Disposal				

				Purchase Price			

				$7.90 million			

				$10.60 million			

				Sale Date			

				May-14			

				May-15			

				Net Yield			

				6.2%			

				4.9%			

				NLA Rate			

				$7,328/m²			

				$9,838/m²			

				WALE			

				1.5 years			

				4.6 years

Past performance is not a reliable indicator of future performance.

Background and Opportunity

The asset comprised an 11,956m² (approx.) office building over five levels, with 340 car parks over two basement levels and at grade.

Bayley Stuart meticulously improved the asset through the implementation of an intensive management plan from the ground up, followed by a re-leasing program to retain existing tenants and seek high quality new tenants at improved rental levels.

We initially focused on improving property management systems and working with existing tenants on transforming the building image, which was enhanced by a major lobby upgrade with a new lift installed to service the basement car park.