Active Perth-based funds manager Greenpool Capital has purchased Dianella Plaza in Perth’s northern suburbs for $76.25 million to close out 2023. The transaction was struck at a $4.25m premium to VCX’s June 2023 book value, reflecting a 6.75% core cap, passing yield of 6.65% and a fully leased yield of 7.38%.
Located in the inner-Perth suburb of Dianella, 8km north of the CBD, the 17,138m2, food, service and convenience-based neighbourhood centre is anchored by Woolworths and Coles, The Reject Shop, 54 specialties and kiosks, three ATMs and six pad sites.
The centre is situated on a strategic, land rich 79,250m2 metropolitan site including 17,735m2 of adjoining (separately titled) land, providing future development/expansion opportunities subject to the relevant planning approvals, and provides car parking for 934 vehicles.
CBRE’s Simon Rooney and James Douglas managed the off-market sale campaign on behalf of Vicinity Centres.
“Despite recent interest rate increases, the sub $100 million retail centre market has continued to increase in buyer depth, demand and overall transaction volumes in 2023, dominated by private capital and attracted by compelling returns, adjusted values and robust underlying trading performance,” Rooney said.
“The overall outlook for retail property is positive both from an owner and investor standpoint. Rents and values have gone through a recalibration coming out of COVID, with minimal recent or forecast supply and corresponding increased demand, an expanding buyer pool and increased liquidity, allowing owners to streamline and reposition portfolios and investors securing access to historically tightly held high-quality assets.”
Dianella Plaza offers easy access from a local and regional context via proximity to key major arterial roads
Dianella Plaza is the fourth retail acquisition for the expanding Greenpool Capital, amassing $468 million in acquisitions since 2021, its most recent purchase being Forest Lakes Shopping Centre (WA) for $81.5 million in July 2022, North Adelaide Village (SA) for $50 million and Runaway Bay Shopping Centre (QLD) at $260 million, all sold and negotiated exclusively by CBRE.
Greenpool Capital’s Managing Director, Brad Osborne said the unconditional exchange was a pleasing close to 2023 for Greenpool.
“Dianella Plaza continues our strong investment strategy of focusing on non-discretionary based centres that are land rich and capable of significant value-add,” said Osborne.
Acquired in the Greenpool Value-Add Fund No2, the acquisition will offer a strong distribution yield and significant projected capital growth. Taking advantage of the underutilised land acquired, Greenpool has plans to introduce a range of income orientated and residential based mixed uses to the centre.
Dianella Plaza is 95% occupied and generates an impressive and growing annual turnover of $123.4 million. Specialty productivity at $7,632/m2 is in line with industry benchmarks coupled with the Plaza’s highly sustainable specialty GOC of 12.4%.
Situated on the corner of Grand Promenade and Alexander Drive, the plaza offers easy access from a local and regional context via proximity to key major arterial roads Grand Promenade Road, Beaufort Street, Morley Drive, Alexander Drive and Tonkin Highway.
The Dianella Plaza transaction brings total retail investment activity in WA for 2023 to a total of approximately $850 million, ranking WA the third highest in terms of retail transaction activity within Australia, behind Victoria at $1.3 billion and Queensland at $1.2 billion. The recent $465 million sale of Midland Gate to Fawkner Property and PAG in October was the largest retail transaction in WA and Australia in 2023.
