INFORMATION MEMORANDUM MARCH 2019
ALKIMOS, WESTERN AUSTRALIA
CONTEMPORARY NEIGHBOURHOOD SHOPPING CENTRE LOCATED IN PERTH’S FASTEST GROWING CATCHMENT
VIA INTERNATIONAL FOR SALE EXPRESSIONS OF INTEREST 2 TRINITY VILLAGE ALKIMOS
ANCHORED BY
16 SPECIALTY TENANCIES INCLUDING CHILDCARE CENTRE
CONTENTS INFORMATION MEMORANDUM 3
301 CONVENIENT CAR BAYS
04 | The Opportunity 15 | Property Description
06 | Investment Highlights 16 | Tenant Mix
08 | Executive Summary 18 | Major Tenancy Details
10 | Location 20 | Financial Summary
12 | Trade Area Overview 22 | Sales Process
14 | Site Details 4 TRINITY VILLAGE ALKIMOS
THE OPPORTUNITY
CBRE WESTERN AUSTRALIAN RETAIL INVESTMENTS ARE PLEASED TO PRESENT THE UNIQUE OPPORTUNITY TO ACQUIRE A RECENTLY CONSTRUCTED COLES ANCHORED NEIGHBOURHOOD SHOPPING CENTRE IN PERTH’S FASTEST GROWING CATCHMENT.
Trinity Village is located on a high exposure corner site, with 4 street frontages, one of which is Marmion Avenue, which experiences traffic of over 23,000 vehicles per day. Situated only 14km* north from the satellite city of Joondalup, the Centre will benefit from the exceptional growth in the primary trade area.
The Centre is an architectural masterpiece that completed construction in 2018 with a strategic design focused on convenience and community activation.
The Centre is anchored by a long 15 year lease to ASX listed Coles with a quality complementary tenancy mix, including a Shell petrol station, RICHARD CASH medical centre and childcare. 0412 006 949 [email protected] We encourage your strong consideration of this investment opportunity and we look forward to assisting you with your enquiries.
Trinity Village is being offered For Sale via an ANTHONY DEL BORRELLO International Expressions of Interest campaign 0466 687 765 closing Thursday the 4th of April 2019 at [email protected] 2:00pm (AWST).
*Approximately INFORMATION MEMORANDUM 5 6 TRINITY VILLAGE ALKIMOS
INVESTMENT HIGHLIGHTS
STRATEGICALLY ANCHORED HIGH EXPOSURE SITE WITH DESIGNED BY COLES CONVENIENT PARKING The centre completed With a 15 year lease to ASX The 2.16Ha* corner site with construction in 2018 and is listed Coles commencing in 4 street frontages is well strategically designed with an 2018, this asset provides the positioned to capture the emphasis on convenience and security of a long-term income high volume of commuter community activation. The new stream. The Coles lease is also and residential traffic along nature of the asset also offers favourable to the landlord with Marmion Avenue, with multiple corresponding depreciation attainable percentage rent and entrance points into the benefits. contribution to statutory and Centre and at grade parking for variable outgoings. 301* vehicles.
*Approximately ^Souce: ABS 2018 INFORMATION MEMORANDUM 7
LONG WALE FOR CENTRE DIVERSE FASTEST GROWING AND SPECIALTIES TENANCY MIX PERTH CATCHMENT The centre provides strong The centre features a variety The centre is located within income security with a total of complementary specialty the master-planned suburb centre WALE of 12.1 years (by tenants with a strong focus on of Alkimos, that will have a income) and a specialty tenant health services and food and population of 60,000^ with WALE (by income) being a beverage. The specialty tenant population growth of 4.00%^ significant 7.6 years. mix includes a Shell petrol per annum expected for the station (under construction), next 5 years. Most of the medical centre, and childcare. largest Australian developers have land within the Alkimos region. 8 TRINITY VILLAGE ALKIMOS
EXECUTIVE SUMMARY
PROPERTY Trinity Village
LOCATION Corner of Marmion Avenue & Santorini Promenade, Alkimos WA
Lot 1446 on Deposited Plan 406821 Certificate of Title Volume 2890 Folio TITLE DETAILS 102
Trinity Village is a newly built neighbourhood shopping centre anchored by DESCRIPTION Coles with 16 specialty tenancies, including a Shell petrol station, medical centre and childcare centre
The centre is located within the City of Wanneroo and is zoned ‘Urban TOWN PLANNING Development’ under District Planning Scheme No. 2
SITE AREA 21,600sqm
TOTAL NLA 6,081sqm
MAJOR TENANT The centre is anchored by Coles and Liquorland (3,695sqm) on a 15 year PROFILE lease with 2 x 10 year options
TOTAL CENTRE WALE 12.1 years (by income)
CAR PARKING 301 car bays at a ratio of 4.44 bays per 100sqm GLA
FULLY LEASED NET $2,299,744 per annum INCOME
A comprehensive Electronic Data Room (EDR) has been established that contains information with respect to the property. Access to the EDR is DUE DILIGENCE available upon execution of a Confidentiality Agreement via the exclusive selling agents
Trinity Village is offered For Sale via an International Expressions of Interest SALES PROCESS campaign closing Thursday the 4th of April 2019 at 2:00pm (AWST) INFORMATION MEMORANDUM 9
ARCHITECTURAL MASTERPIECE DESIGNED FOR CONVENIENCE AND COMMUNITY ACTIVATION
HIGH EXPOSURE CORNER SITE WITH FOUR STREET FRONTAGES 10 TRINITY VILLAGE ALKIMOS
YANCHEP GOLF YANCHEP COURSE
THE EGLINTON LOCATION
PINJAR SITUATED IN PERTH’S NORTHERN COASTAL CORRIDOR, THE ALKIMOS MINDARIE PRECINCT COMPRISES OF FOUR SEPARATE DEVELOPMENTS, PLANNED CARRAMAR AND DEVELOPED BY LANDCORP TO 14KM* INTERACT AS A PREMIER, FULLY MASTER-PLANNED COMMUNITY. JOONDALUP
Alkimos is one of the biggest coastal developments in Perth for more than 50 years. Boasting the regions finest swimming beach, Alkimos has become one of the most sought after coastal HILLARYS suburbs, with an exciting future.
The region has excellent road network connectivity via Marmion Avenue with the extension of the 40KM* Mitchell Freeway to the east of the site planned in the short term. The future railway station will add further amenity to the Alkimos residents with easy access to the satellite city of Joondalup and the KARRINYUP Perth CBD to the south.
The Centre enjoys a lead corner location with four street frontages, in close proximity to the Alkimos Beach Primary School and adjacent to the Butler North Secondary School which is currently under construction.
PERTH
*Approximately INFORMATION MEMORANDUM 11
9
7
2 ALKIMOS 8 6 1
5
Wanneroo Road 4
BUTLER
1. Trinity Village Shopping Centre 2. Alkimos Beach Primary School 3. Alkimos Baptist College Marmion Avenue 4. Butler Station 5. Butler North Secondary School (Under Construction) 6. Alkimos Primary School JOONDALUP 7. St James Anglican School TOWN CENTRE 8. Future Residential Developments * * 14KM 3 PERTH CBD 9. Proposed Train Station 40KM
*Approximately 12 TRINITY VILLAGE ALKIMOS
TRADE AREA OVERVIEW
Over 96% of the housing ACCORDING TO THE AUSTRALIAN in Alkimos is standalone BUREAU OF STATISTICS, ALKIMOS HAS houses, catering to the family CONSISTENTLY BEEN ONE OF THE demographic the suburb attracts. FASTEST GROWING SUBURBS IN THE
PERTH METROPOLITAN AREA. THIS With a number of established GROWTH HAS BEEN DRIVEN BY THE and developing residential estates in this northern corridor, DEMAND FOR AFFORDABLE COASTAL the current population in the LIVING AND THE WELL CONNECTED primary catchment is at 44,241 NATURE OF ITS ROAD AND FUTURE people and is forecast to grow at a rate of 4.0% p.a.^ for the RAIL NETWORKS. THIS GROWTH IS next five years, well above the ANTICIPATED TO CONTINUE AS THE average for the greater Perth WA HOUSING MARKET CONTINUES TO region.
IMPROVE OVER THE COMING YEARS. Marmion Avenue is currently the primary route for residents travelling north/south and experiences over 23,000* cars passing per day. The City of Wanneroo recently begun works on the Marmion Avenue widening works which will see the road converted to a dual carriageway from Butler to Yanchep to cater for the growing levels of traffic utilising the road.
The main trade area is predominantly characterised by young Australian born families who are accustomed to and rely on convenience based retail facilities. Average household expenditure on food and groceries is above the greater Perth average.
*Approximately ^Source: ABS 2018 INFORMATION MEMORANDUM 13
OWNERS & DEVELOPERS THAT HAVE CURRENT PROJECTS IN THE ALKIMOS REGION
TOTAL POPULATION
3KM 5KM GREATER RADIUS RADIUS PERTH 44,241 74,513 2,065,390
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
% Change P.A 1.5%
1.0%
0.5%
0%
2018-2023 2023-2028
3km Radius 5km Radius Greater Perth 14 TRINITY VILLAGE ALKIMOS SITE DETAILS
ADDRESS Corner of Marmion Avenue and Santorini Promenade, Alkimos, WA
Lot 1446 on Deposited Plan 406821 Certificate of Title Volume 2890 TITLE DETAILS Folio 102
SITE AREA 21,600sqm
TOWN PLANNING/ The centre is located within the City of Wanneroo and is zoned ‘Urban ZONING Development’ under District Planning Scheme No. 2.
97m* to Marmion Avenue 204m* to Santorini Promenade FRONTAGES 96m* to Trethowan Promenade 199m* to Longstaff Avenue
The site benefits from multiple vehicular access points from Santorini ACCESS Promenade, Trethowan Promenade and Longstaff Avenue.
TRETHOWAN PROMENADE MARMION AVENUE LONGSTAFF AVENUE
CAR WASH 301 CONVENIENT CAR BAYS SITE AREA 21,600SQM SERVICE STATION UNDER CONSTRUCTION
SANTORINI PROMENADE
*Approximately INFORMATION MEMORANDUM 15 PROPERTY DESCRIPTION
TRINITY VILLAGE IS A CONTEMPORARY NEIGHBOURHOOD SHOPPING CENTRE COMPLETED IN 2018 CONSTRUCTED TO A VERY HIGH STANDARD OF FINISH.
The 6,081sqm single level centre is situated towards Trethowan Promenade being the eastern boundary of the site, providing excellent visibility to the Centre from the major arterial road, Marmion Avenue. Anchor tenant Coles occupies the majority of the centre with 13 specialty tenancies, a petrol station, car wash and childcare centre providing a highly convenient tenancy mix designed to provide every day convenience and amenity to the growing catchment.
CAR PARKING The centre provides 301 convenient at grade car bays at a ratio of 4.44 bays per 100sqm of GLA and are supplemented by additional on street parking in the immediate vicinity of the centre. 16 TRINITY VILLAGE ALKIMOS
TENANT MIX
NO. TENANT NAME CATEGORY AREA SQM
Majors
M1 Coles + Liquorland Supermarket & Liquor 3,695.30
Specialties
1 La Barber Service 37.80
2 Vacant Vacant 50.90
3 KL Nail & Beauty Service 71.70
4 Vacant Vacant 94.00
6 Trinity Discount Drug Store Pharmacy & Cosmetics 222.20
7 Vacant Vacant 72.50
8 Vacant Vacant 144.70
9A Café Cafés/Restaurants 136.60
9B Restaurant Cafés/Restaurants 82.50
10 Jupiter Medical Centre Service 355.40
10A Jupiter Dentist Service 96.00
11A F45 Service 234.90
11B Best Body Alkimos Service 179.60
13 Trinity Early Learning School Mini Major 464.00
14 Shell Service Station Other Reporting 143.00
15 Car Wash Other Reporting
TOTAL 6,081.10 INFORMATION MEMORANDUM 17
TRETHOWAN PROMENADE
PLAY AREA 11B
10 10A
7 1 2 3 8 4 9A
9B
LONGSTAFF AVENUE LONGSTAFF 301 PROMENADE SANTORINI CONVENIENT CAR BAYS
15
RETAINED LANDSCAPE
MARMION AVENUE 18 TRINITY VILLAGE ALKIMOS
MAJOR TENANCY DETAILS
OUTGOINGS CONTRIBUTION Coles pay a gross rent for the first broken LEASE accounting period, being, from the date of COMMENCEMENT 28 February 2018 commencement to the end of the financial year, DATE June 30, and first full year financial year, July 1 to
TERM 15 years June 30. For the following financial years Coles pay the increase in Variable Outgoings over the LEASE EXPIRY DATE 27 February 2033 base year to the landlord of the current Variable Outgoings payable and the Outgoings payable for OPTION 2 x 10 years the previous period increased by 3%. Coles is also to pay the full increase in Statutory Outgoings over AREA 3,695.30sqm the base year. PASSING BASE $1,237,500 p.a. PERCENTAGE RENT RENTAL Percentage rent for the for the lease is calculated PASSING BASE for the second year and any subsequent lease year $334.88/sqm RENTAL RATE at:
Formula based • 2.50% of Gross Sales in excess of $46,720,000 REVIEW rent reviews every up to $51,720,000 STRUCTURE 5 years • 2.25% of Gross Sales in excess of $51,720,000 up to $56,720,000
• 2.00% of Gross Sales in excess of $56,720,000.
Less the sum of any increase in base rent. INFORMATION MEMORANDUM 19
WITH OVER 800 STORES ACROSS AUSTRALIA AND CATERING TO OVER 14 MILLION CUSTOMERS PER WEEK, COLES IS ONE OF AUSTRALIA’S LARGEST SUPERMARKET CHAINS WITH A STRONG FOCUS ON HIGH QUALITY PRODUCE AND EVERY DAY LOW PRICES 20 TRINITY VILLAGE ALKIMOS
FINANCIAL SUMMARY
AREA BASE RENT OUTGOINGS GROSS RENT
Majors SQM $PA $PA $PA
Coles + Liquorland 3,695.3 1,237,500 - 1,237,500
Mini Majors
Childcare 464.0 144,495 27,006 171,502
Specialties
Non-Food Specialty 222.2 155,540 17,186 172,726
Food Specialty 219.1 124,120 16,946 141,067
Retail Services 975.4 378,443 75,442 453,885
Other Tenancies
Non-Retail & Other Tenancies 143.0 420,000 7,055 427,055
ATM - - - -
Specialties 1,559.7 1,078,103 116,629 1,194,732
GROSS PASSING RENT 5,719.0 2,460,099 143,635 2,603,734
Other Income (including electricity profit) 19,000
GROSS INCOME 2,622,863
Statutory Outgoings (incl. land tax) (300,000)
Operating Outgoings (245,340)
Total Non-Recoverable Outgoings - 545,340
NET PASSING INCOME 2,077,394
Vacant Tenancies 362.1 222,350
NET INCOME (Fully Leased) 6,081.1 2,299,744 INFORMATION MEMORANDUM 21
GLA ANALYSIS LEASE EXPIRY PROFILE COLES & LIQUORLAND
Lease Term Option Period
Coles & Liquorland
2040
2048
2050
2044 2046
2020
2028 2030
2054
2026 2038 2042
2034 2036 2052 2022 2024 2032 2018
Coles & Liquorland 62%
Specialties 30% Mini Majors 8%
LEASE EXPIRY PROFILE MINI MAJORS & SPECIALTIES
55% % Specialty GLA % Specialy Income 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 22 TRINITY VILLAGE ALKIMOS
SALES PROCESS
TRINITY VILLAGE IS BEING OFFERED FOR SALE VIA AN INTERNATIONAL EXPRESSIONS OF INTEREST CAMPAIGN CLOSING THURSDAY THE 4TH OF APRIL 2019 AT 2:00PM (AWST). PROSPECTIVE PURCHASERS ARE INVITED TO CONTACT THE AGENTS BELOW TO DISCUSS THIS INVESTMENT OPPORTUNITY.
To facilitate the consideration of offers we propose FURTHER INFORMATION the following guidelines which interested parties All enquiries in relation to this opportunity are to be should include (at a minimum) in any offer directed to the exclusive agents CBRE. submitted. Details of the key agent contacts are provided • Name of Buyer below:
• Buyer’s Solicitor/Settlement Agent
• Purchase Price (exclusive of GST)
• Deposit & Balance of Payment
• Details of capacity to complete the dealing RICHARD CASH 0412 006 949 • Marked up sale contract and; [email protected] • Special conditions (if any)
The Seller will not necessarily accept, and there shall be no obligation on the Seller to accept, the ANTHONY DEL BORRELLO highest offer or any offer. The Seller may select 0466 687 765 the preferred offer proposal for acceptance in the [email protected] Seller’s absolute discretion.
AN ELECTRONIC DATA ROOM To assist with the assessment of the opportunity, an Electronic Data Room had been established for the provision of due diligence. Please contact one of the agents to arrange access to the EDR, which will be provided upon agreement to the online EDR protocol. INFORMATION MEMORANDUM 23 ALKIMOS, WESTERN AUSTRALIA
Disclaimer This information memorandum (“IM”) has been prepared by CBRE (C) Pty Ltd ABN 64 003 205 552 (“CBRE”) and is prepared on the basis of information provided to CBRE in connection with the relevant transaction. Any statement or opinion made by CBRE in connection with the transaction contemplated in the IM is not based on any actual or implied knowledge or consideration of the investment objectives, financial situation, legal or taxation position or any other particular needs or requirements of the recipients of this IM. All parties must make their own independent assessment and investigation including without limitation, seeking professional advice and must determine its interest in proceeding upon the basis of such independent assessment, investigation and appraisal. Any statement or opinion of CBRE whether express or implied is not, nor should be construed as a recommendation by CBRE or any of its officers, agents or employees to participate in the transaction and, to that extent, no reliance will be placed on CBRE or its associates. CBRE and its associates do not warrant (expressly or impliedly) that information contained in this IM is complete, true and correct and not misleading or not likely to be misleading or deceptive. CBRE and its associates are not responsible and will not under any circumstances be liable (whether at law, in equity, under statute or otherwise) for any statement made or anything contained in or arising out of the information including, without limitation, any errors, misrepresentation or omissions. CBRE disclaims all responsibility for any loss or damage caused by reliance by any person on this IM or any representation, warranty or statement made by or on behalf of CBRE and its associates. This IM is confidential and is for the sole use of persons directly provided with it by CBRE and is not to be reproduced, copied or sent to any other person without the prior written consent of CBRE. The use by, or reliance upon this document by any other person is not authorised by CBRE and without limitation to the above disclaimers, CBRE is not liable for any loss arising from such unauthorised use or reliance.