Case Study

1155 High St, Armadale

May 2014 Purchase Price


May 2015 Disposal Price


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 huge 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 shop by shop if any delays occurred in securing new tenants.