Greenpool Capital acquires Dianella Plaza in $76.25 million transaction
Dianella Plaza site boundary indicated in the image above is approximate only.
Perth – December 21, 2023 – Active Perth-based funds manager Greenpool Capital has acquired Dianella Plaza in Perth’s northern suburbs for $76.25m to close out 2023.
Dianella Plaza is the fourth retail acquisition for the expanding Greenpool Capital, amassing $468m in acquisitions since 2021, its most recent purchase being Forest Lakes Shopping Centre WA for $81.5m in July 2022, North Adelaide Village SA for $50m and Runaway Bay Shopping Centre QLD at $260m.
Located in the inner-Perth suburb of Dianella, 6km north of the CBD, the 17,138sqm, 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.
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”, Mr Osborne said.
Acquired in the Greenpool Value-Add Fund No 2, the acquisition will offer a strong distribution yield and significant projected capital growth. Taking advantage of the underutilized land acquired, Greenpool has plans to introduce a range of income orientated and residential based mixed uses to the Centre.
CBRE’s Simon Rooney exclusively managed the off-market sale campaign on behalf of Vicinity Centres together with James Douglas.
“Despite recent interest rate increases, the sub $100m 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,” Mr 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”.
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%.
Dianella Plaza is 95% occupied and generates an impressive and growing annual turnover of $123.4m. Specialty productivity at $7,632sqm 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 centre is situated on a strategic, land rich 79,250sqm metropolitan site including 17,735sqm of adjoining (separately titled) land, providing future development / expansion opportunities subject to the relevant planning approvals, and provides car parking for 934 vehicles.