RiverX has been invited to participate in the cornerstone opportunity in Mandurah WA


A counter cyclical opportunity to acquire a sub-regional shopping centre at 40% below replacement cost, anchored by strong performing Coles and ALDI supermarkets, and Kmart discount department store.

Key points

  • Target distributions: 8% in year one; increasing to 9.25% p.a. in year 4, (average 8.60%) over the 5-year initial investment term
  • Monthly distributions
  • Forecasted IRR: 13.5%+
  • 5-year initial fund term
  • Anchored by strong staple needs tenants being Coles, Aldi and Kmart, occupying 61% of the centre GLA
  • Conveniently positioned next to the new Halls Head Commercial Centre (including a new 13,000 sqm Bunnings)
  • Adjacent to a large established residential catchment providing residents with a one-stop shopping and retail destination
  • The asset sits on a sustainable 89,439sqm (9 hectares) freehold land holding, 19,373 sqm overall floor space, with 960 car bays
  • Value-add upside with >10,000 sqm of surplus land available for future development
  • Purchase price $69.8m representing a $44.4 million (38.9%) discount to the peak book value in June 2018

Summary

  • This asset attracts 2.4m annual visitors
  • 3.3 year WALE @ 100% occupancy
  • Opportunistic acquisition price 51% below replacement cost, capitalising on mispricing
  • 64% of gross income is generated from non-discretionary tenants
  • Sustainable average specialty shops gross rent 33% below benchmarks for comparable sub-regional shopping centres
  • Extensive experience in retail property ownership with $3.2bn AUM in this space and 56 assets. Strong conviction in the target return of the fund and there has been a positive reaction to the offer by our investor base / the market.
Thomas Armstrong

M: 0428 750 397
E:  tarmstrong@riverx.com.au
W:
 riverx.com.au

7/1 Kings Cross Rd,
Rushcutters Bay, NSW, 2011