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

Prior to acquisition, High Street’s retail vacancy levels were well over 10% and four or the six retail tenants had confirmed they were vacating within 12-months. Despite significant forthcoming lease risk, Bayley Stuart was confident High Street was attractive at an affordable rental level, and we could present these shops more effectively than competing surrounding stock to secure a good mix of new tenants.

We were drawn to the ability to provide enhanced returns via leasing success and multiple exit strategies, particularly as the asset was already strata titled, providing the ability to sell shops and offices individually or as a whole.