Savills Research Australia
Briefing National Retail February 2018
Report Contents
Executive Summary 2 Key Market Indicators 4 Retail Trade 6 Regional/Sub-Regional Centres 8 Neighbourhood Centres 10 Large Format Retail 11 NSW 12 VIC 14 QLD 16 WA 18 SA 20 Outlook 2018 22 Key 2017 Transactions 23
Key Contacts 26 Savills Research | Briefing National Retail
Associate Director – Research
Katy Dean [email protected]
Senior Analyst– Research For our latest national reports, visit savills.com.au/research
Peter Sutherland To join Savills Research mailing list, please email [email protected] [email protected]
Executive Summary
Many of the key drivers that have underpinned the Although investment volumes in 2015 got close to $9 billion, performance of Australia’s retail property market since investment in 2017 ($5m+) outshines any level seen in the 2015 are unchanged. Debt remains affordable and last decade. Almost half of the total value invested was in populations continue to grow, particularly on the eastern the $200 million + segment, a trend which hasn’t been seen seaboard. The weight of capital targeting property and the since 2007. international search for yield has yet to lose any significant While large institutional funds and trusts, as well as foreign momentum, rather conditions are shifting globally and and private investors, have all played a part in the hunt for markets that were previously off the agenda for political yield in recent years, there has been a noticeable change in or economic reasons are now being considered again. strategy of net sellers in most markets to sell down non-core Global demand for retail assets is clearly evident with assets. This has created opportunity for investors actively Westfield Group announcing in December that it had struck seeking value-add retail assets and purchaser and vendor a deal to sell the company to European listed property profiles are beginning to shift. Further supporting this trend company, Unibail-Rodamco, for US$24.7 billion (AU$32.8bn). is the amount of capital that is currently being invested into After the deal is finalised, Unibail-Rodamco will emerge the redevelopment of major centres across the country. with control of 104 assets in 27 markets across the world, Broadly speaking, there are some challenges facing the with an estimated US$72.2 billion of gross market value. sector. The so called ‘Amazon effect’ is still playing out Australian retail property has been a major recipient of and the level of investor/developer confidence in the sector investment capital over the last three years; reflecting remains varied, particularly for discretionary retail. While significant pent-up demand on the back of not just non-discretionary retail appears to have less headwinds Australia’s safe haven status, but the sector itself within from online trade, all asset classes remain highly the commercial property market. Direct investment competitive and sought-after. Retail sales turnover over the three years to 2017 reached AU$25.6 billion, growth has also been choppy across the country, with up from AU$19 billion in the three years to 2014. a divergence developing between key retail categories as consumer shopping patterns continue evolving. While overall volumes appeared to moderate during the first half of 2017, the pace quickly recovered and the In this report, we look at the major retail sub-sectors across final quarter closed strongly as major assets came Australia’s main capital cities focusing on recent investment to market. Surpassing expectations, 2017 saw a total of sale volumes and development trends, as at December 2017. circa $9.17 billion invested across Australia over the year.
State Summary Table
Key State Indicators (%) Latest NSW VIC QLD WA SA ACT AUS
SFD / GDP Growth Sep-17 3.1 (2.7) 4.2 (3.0) 3.0 (2.0) -4.2 (2.2) 3.6 (2.0) 3.0 (2.6) 2.2 (2.6)
Population Growth Jun-17 1.6 (1.4) 2.3 (2.1) 1.6 (1.8) 0.8 (2.1) 0.6 (0.9) 1.7 (1.8) 1.6 (1.7)
Employment Growth Nov-17 2.9 (1.6) 3.0 (2.1) 4.8 (1.4) 2.8 (1.6) 1.3 (0.7) 3.9 (1.6) 3.1 (1.6)
Unemployment Rate Nov-17 4.8 (5.3) 5.9 (5.6) 6.1 (5.6) 6.0 (4.8) 6.3 (6.0) 4.0 (3.8) 5.6 (5.4)
Inflation Sep-17 1.9 (2.5) 2.2 (2.3) 1.5 (2.4) 0.8 (2.1) 1.8 (2.3) 2.1 (2.2) 1.8 (2.4)
Retail Turnover Growth Dec-17 2.6 (4.0) 4.3 (4.0) 0.4 (3.1) -0.1 (3.3) 4.9 (3.0) 1.5 (3.3) 2.4 (3.6)
Source: ABS/Savills. Note: Annual Change shown, 10yr compound average shown in brackets.
02 February 2018
savills.com.au/research 03 Savills Research | Briefing National Retail
Key Market Indicators
“NSW and QLD front runners National Sales Activity as Australian retail transactions Following an investment sale surge in November and December, mostly in Queensland and New South Wales, ($5m+) reach a 10-year high.” 2017 can go on record as an extraordinary year. The total value of investment transactions ($5m+) signed in 2017 reached a 10-year high at $9.17 billion, up 23% on 2016 and well above the 10-year average of $5.7 billion.
Almost half of the total value invested was in the $200 million+ segment, a trend not seen since 2007. Of the surveyed markets, New South Wales and Queensland were the headliners, recording significant rises in investment volumes on a year-on-year basis. Transactions in the Regional SC sector ($2.51bn) were largely responsible for the record- breaking year. The last time Regional sales volumes got close to this level was back in 2007 ($2.87bn). The Large Format sector was also a major standout, with sale volumes reaching Vendors its highest level in the past decade.
National Transaction Profile Vendors v Purchasers National Sales Activity ($5m+) by State
Purchasers $10bn NSW VIC QLD WA SA ACT $9bn Vendors $8bn 0% 20% 40% 60% 80% 100% $7bn Fund Trust Developer $6bn Owner Occupier Government Syndicate Foreign Investor Private Investor Other $5bn Purchasers $10bn $4bn NSW VIC QLD WA SA ACT $9bn $3bn $8bn $2bn 0% 20% 40% 60% 80% 100% $7bn $1bn Fund Trust Developer $6bn $0bn Owner Occupier Government Syndicate Foreign Investor Private Investor Other $5bn $4bn Source: Savills Research (Year to Dec-17) Source: Savills Research (Year to Dec-17) $3bn 04 $2bn $1bn $0bn February 2018
Savills ResearchSavills Research | Briefing | Briefing Note - NationalNote - National Retail Retail Q4/2017Q4/2017
NationalNational Retail Retail Supply Supply by Sector by Sector NationalNational Retail Retail Supply Supply by State by State
NationalThe nationalThe nationalRetail supply supplySupplypipeline pipeline is byexpected Sectoris expected to gradually to gradually build buildNationally, NationalNationally, two main Retailtwo sectors main Supply sectors are driving areby drivingStatethe development the development over theover next the two next years two asyears new as Regional, new Regional, Neighbourhood Neighbourhood pipeline pipeline with Regional with Regional project sproject accountings accounting for 41% for of 41% total of total The national supply pipeline* is expected to gradually build Nationally, two main sectors are driving the development and Largeand LargeFormat Format retail stock retail isstock released is released and owners and owners re- andre- Largeand FormatLarge Format accounting accounting for 26.5%. for 26.5%. Neighbourhood Neighbourhood over the next two years as new Regional, Neighbourhood and positionposition their assetstheir assetsto be stto adaptbest adaptto the to changing the changing projects pipelineprojects account with account for Regional 14.5% for 14.5%an centred Sub-Regional an dprojects Sub-Regional 10.8%,accounting 10.8%, with for with 41% Largeenvironment. Formatenvironment. retail stock is released and owners re-position the balanceofthe total balance occurringGFA andoccurring acrossLarge acrossFormatCBD Centres,CBD accounting Centres, Shops, for Shops, 26.5%. their assets to best adapt to the changing environment. FreestandingNeighbourhoodFreestanding and Mixed-Use and projects Mixed-Use centres. account centres. for 14.5% and Sub- Regional 10.8%, with the balance occurring across CBD TraditionallyTraditionallyTraditionally RegionalRegional Regional centrecentre centre ownersowners owners have have attempted haveattempted attempted to to to Centres, Shops, Freestanding and Mixed-Use centres. boostboost market marketboost market share by byshare expandinexpanding by expanding existing existingg existing centres, centres, centres, however however however New SouthNew WalesSouth hasWales the has largest the largestsupply supplypipeline pipeline of all the of all the their collective strategy is increasingly becoming one of states surveyed, with a high proportion at DA stage. This is theirtheir collectivecollective strategy isis increasinglyincreasingly becoming becoming one one of of statesNew surveyed, South with Wales a high has prop theortion largest at DAsupply stage. pipeline This is of all the differentiationdifferentiation by creating by creating a customer a customer ‘experience’. ‘experience’. This is inThis isconsistent in consistent with healthy with healthy State Final State Demand Final Demand growth growthand high and high differentiation by creating a customer ‘experience’. This is in states surveyed, with a high proportion at DA stage. This is responseresponse to a structuralto a structural change change in consumer in consumer spending spending levels oflevels infrastructure of infrastructure spending spending associated associated with various with various response to a structural change in consumer spending habits consistent with the state's economic growth and high levels habits habitsas shoppers as shoppers shift to shift online to platforms,online platforms, which inwhich many in manytransport transport projects. projects. This is Thiscreating is creating opportunities opportunities for retail for retail as shoppers shift to online platforms, which in many cases is cases iscases cheaper is cheaper and more and convenient. more convenient. investors,ofinvestors, infrastructure particularly particularly inspending resi dentialin resi associated dentialgrowth growthcorridors, with variouscorridors, with transport with cheaper and more convenient. the volumeprojects.the volume of Thisnew of is development newcreating development opportunities pipeline pipeline being for ledbeingretail by investors, led by particularly in residential growth corridors, with the volume of TheThe Large LargeThe Format LargeFormat categoryFormat category categoryis alsois also expected is expectedalso toexpected grow to stronglygrow to grow Regional Regional and Large and FormatLarge Format centre projects.centre projects. new development pipeline being led by Regional and Large overstrongly thestrongly three over yearsthe over three to the 2020. yearsthree Home toyears 2020. Consortium to 2020.Home Home Consortiumand Bunnings Consortium Format centre projects. areand both Bunningsand expanding Bunnings are inboth arethe expandingwakeboth expandingof the in former’sthe inwake the purchase ofwake the ofof the former’s purchase of the Masters business in August 2016. theformer’s Masters purchase portfolio of inthe August Masters 2016. business in August 2016.
National Supply Pipeline by Type ('000sq m) National Supply Pipeline by State Share (%) NationalNational Supply Supply Pipeline Pipeline by Type by (‘000sq Type (‘000sq m) m) NationalNational Supply Supply Pipeline Pipeli by Statene by Share State (%)Share (%)
Regional Regional Sub RegionalSub Regional NeighbourhoodNeighbourhood 1,200 1,200 CBD CentreCBD Centre Large FormatLarge Format FreestandingFreestanding
1,000 1,000 NSW ‐ 43.5%NSW ‐ 43.5%
800 800 VIC ‐ 6.2%VIC ‐ 6.2%
600 600 QLD ‐ 27.8%QLD ‐ 27.8%
400 400 SA ‐ 2.7%SA ‐ 2.7%
200 200 WA ‐ 19.8%WA ‐ 19.8% 0 0 20172017 2018 2018 2019 2019 2020 2020 2021 2021 Source:Source: Cordell/SavillsSource: Cordell/Savills Research Research Research (Year to Dec-17) Source:Source: Cordell/SavillsSource: Cordell/SavillsCordell/Savills Research Research Research (Year to Dec-17) *Pipeline data includes new/additions/redevelopment/refurbishment projects either under construction, in committed stage or in planning. savills.com.au/research 05 savills.com.au/researchsavills.com.au/research 5 5 Savills Research | Briefing National Retail SavillsSavills ResearchResearch || BriefingBriefing NoteNote -- NationalNational RetailRetail Q4/2017Q4/2017
Savills Research | Briefing Note - National Retail Q4/2017 Retail Trade RetailRetail TradeTrade Retail Trade Retail Trade Growth
RetailRetail TradeTrade GrowthGrowth 10.0% Retail Trade grew by 2.4% over the year to December 10.0% RetailRetail2017, aTradeTrade figure grewgrew below byby all 2.4%long2.4% term overover averages. thethe yearyear toWhilstto retail 9.0%9.0% Retail Trade Growth 10.0% DecemberDecembertrade has 2017,2017,traditionally aa figurefigure been belowbelow stronger allall longlong in termtermDecember, Retail Trade grew by 2.4% over the year to 8.0%8.0% averages.averages.retail sales WhilstWhilst fell bytraditionally,traditionally, 1.3% (seasonally retailretail tradetrade adjusted) hashas over 9.0% Decemberbeen stronger 2017, in aDecember, figure below retail all sales long fell term by 7.0%7.0% beenthe monthstronger of in December.December, retailHigher sales than fell byexpected 8.0% averages.1.3%1.3% overover Whilst thethe monthmonth traditionally, ofof December.December. retail HigherHighertrade thanhasthan 6.0%6.0% beensales stronger volumes in wereDecember, not enough retail salesto buoy fell bytotal retail 7.0% expectedexpected salessales volumesvolumes werewere notnot enoughenough toto 5.0%5.0% 1.3%buoybuoytrade over totaltotalgrowth the retailretail month as trade trade increasingof December. growthgrowth competitionasas Higher increasingincreasing than between 6.0% 4.0%4.0% expectedcompetitioncompetitiondepartment sales between betweenstore volumes retailers departmentdepartment were kept not storeoverallstore enough retailersretailers prices to down. 5.0% buoykeptkeptWeaker overalloveralltotal discretionary retail pricesprices trade down.down. spendinggrowth WeakerWeaker ascontinues discretionarydiscretionary increasing to hamper 3.0%3.0% competition between department store retailers 4.0% spendingspendingoverall retail continuescontinues trade totogrowth hamperhamper numbers overalloverall retailretail as tradetradea result of 2.0%2.0% keptgrowthgrowth overall numbersnumbers prices asas down. aa resultresult Weaker ofof recordrecord discretionary lowlow wageswages 3.0% record low wages growth and an earlier than expected 1.0%1.0% spendinggrowthgrowthdownturn andand continues in anan the earlierearlier residential to thanthanhamper expectedexpected housing overall downturn downturnretail sector, trade leading inin to 2.0% growth numbers as a result of record low wages 0.0%0.0% thethemore residentialresidential cautious housing housingconsumers. sector,sector, With leadingleading economic toto moremore indicators 1.0% growthcautiouscautious and consumers.consumers. an earlier than WithWith expected economiceconomic downturn indicatorsindicators in painting a largely mixed picture, the outlook for cash 0.0% thepainting residential a largely housing mixed sector, picture, leading the outlook to more for paintingrates remains a largely divided. mixed picture,This uncertainty the outlook is for likely to cautiouscashcash ratesrates consumers. remainsremains divided. divided.With economic ThisThis uncertaintyuncertainty indicators isis translate to retail trade numbers over 2018. paintinglikelylikely toto a translate translatelargely mixed toto retailretail picture, tradetrade the numbersnumbers outlook over overfor Source:Source: ABSABS // SavillsSavills ResearchResearch Source: ABS / Savills Research cash2018.2018. rates remains divided. This uncertainty is likely to translate to retail trade numbers over Source: ABS / Savills Research
2018. Retail Trade Growth by State (Dec-17)
RetailRetail TradeTrade byby StateState (to(to Dec-17)Dec-17) 6%6% 1yr1yr 5yr5yr 10yr10yr 15yr15yr Challenges in the retail sector remain evident with Challenges in the retail sector remain evident RetailChallengesall states, Trade within bythe the Stateretail exception sector (to Dec-17) of remain South evidentAustralia, are 6% 5%5% 1yr 5yr 10yr 15yr withwithperforming allall states,states, below butbut theirSouthSouth respective Australia,Australia, long performingperforming term averages Challengeswellwellon belowabelow rolling theirintheir theannual respectiverespective retail basis.sector longlong After remain termterm aaverages,averages, evidentstronger than with all states, but South Australia, performing 5% ononexpected aa rollingrolling November, annualannual basis.basis. all states AfterAfter a arecorded strongerstronger fallsthanthan in retail 4%4% well below their respective long term averages, expectedexpectedtrade in the November,November, month of allall December, ststatesates recordedrecorded except fallsfalls Queensland, inin onretailretail a rolling tradetrade annualinin thethe monthmonthbasis. Afterofof December,December, a stronger exceptexcept than 4%3% which remained largely unchanged. Whilst online 3% expectedQueensland,Queensland, November, whichwhich all statesremainedremained recorded fallslargelylargely in retailretailing trade numbers in the month were ofhigher December, than the except year before, 3% unchanged.unchanged. WhilstWhilst onlineonline retailingretailing numbersnumbers werewere 2%2% Queensland,higherhighercompetitiveness thanthan thethe which yearyearbetween before,before,remained retailers competitivenesscompetitiveness led largelyto earlier than unchanged.expected salesWhilst and online internet retailing promotions, numbers were starting in 2% betweenbetween retailersretailers ledled toto earlierearlier thanthan expectedexpected 1%1% highersalessalesNovember, thanandand keepingtheinternetinternet year a promotions, before,promotions,lid on overall competitiveness startingretailstarting trade inin growth betweenNovember,November,numbers retailers in keeping keepingDecember. led aa to lidlid earlier onon overalloverall than retail retailexpected tradetrade 1% 0%0% salesgrowthgrowth and numbersnumbers internet inin December.December. promotions, starting in November, keeping a lid on overall retail trade 0% growth numbers in December. ‐‐1%1% NSWNSW VIC VIC QLD QLD WA WA SA SA ACT ACT AUS AUS ‐1% Source:Source:Source: ABSABS ABS // Savills/Savills Savills ResearchResearch Research NSW VIC QLD WA SA ACT AUS
Source: ABS / Savills Research
3.8% RetailRetailRetail TradeTrade Trade byby by SectorSector Sector (to(to (Dec-17) Oct-17)Oct-17) 4% 3.8% 4% AllAll sectorssectors recordedrecorded fallsfalls inin thethe monthmonth ofof 3.8% 2.7%2.7% 2.5%2.5% 2.5% Retail Trade by Sector (to Oct-17) 4%3%3% 2.5% December,December,All sectors exceptexceptrecorded forfor fallsFoodFood in retailing, retailing,the month whichwhich of December, fellfell All sectors recorded falls in the month of 2%2% 2.7% 2.5% 1.5%1.5% 1.3% bybyexcept 0.7%0.7% inforin December,December, Food retailing, bubuoyingoying which thethe overalloverall fell rollingrollingby 0.7% in 3% 2.5% 1.3% 1.1%1.1% December,annualannualDecember, growthgrowth except buoying raterate for to totheFood 2.7%.2.7%. overall retailing, AnAn rolling earlierearlier which annual than thanfell growth 2%1%1% 1.5% byexpectedexpectedrate 0.7% to 2.7%.in December,coolingcooling An earlier downdown buoying than ofof the expectedthethe overall residentialresidential rollingcooling down 1.3% 1.1% annual growth rate to 2.7%. An earlier than housinghousingof the residential sectorsector continuescontinues housing to tosector hamperhamper continues HouseholdHousehold to hamper 1%0%0% expected cooling down of the residential GoodsGoodsHousehold andand Hardware HardwareGoods and && Garden GardenHardware retailing.retailing. & Garden WithWith aretailing.a ‐‐1%1% housingreboundrebound sector inin full-timefull-time continues emplempl oymentoymentto hamper growth,growth, Household there’sthere’s 0% With a rebound in full-time employment growth, (1.6%)(1.6%) Goodspotentialpotential and forfor Hardware aa translationtranslation & Garden ontoonto retailing. wageswages growth, growth,With a ‐‐2%2% there’s potential for a translation onto wages growth, ‐1% reboundandand thusthus in makingfull-timemaking aempla turnaroundturnaroundoyment growth, inin retailretail there’s tradetrade (1.6%) Food and thus making a turnaround in retail trade turnover ‐2% Food Other potential for a translation onto wages growth, Other
turnover possible. However, price Stores Goods turnover possible. However, price Stores Goods Garden andpossible. thus makingHowever, a turnaroundprice competitiveness in retail trade amongst Garden
competitiveness amongst discretionary retailers Footwear &
competitiveness amongst discretionary retailers Footwear & Food Other & Restaurants & Restaurants turnover possible. However, price Stores remainsremainsdiscretionary moremore retailers aggressiveaggressive remains thanthan more expected,expected, aggressive asas than Goods Garden Supermarkets Supermarkets & &
competitiveness amongst discretionary retailers Footwear notednotedexpected, byby salessales as startingnotedstarting by earlierearlier sales thanthan starting thethe traditionaltraditional earlier than the & Household Restaurants Household &
remains more aggressive than expected, as Department Department Café Café
BoxingBoxingtraditional DayDay Boxing sales.sales. Positively,Positively,Day sales. anan Positively, uptickuptick inin FoodanFood uptick in Supermarkets Hardware Hardware & Clothing Clothing notedretailingretailing by oversalesover December Decemberstarting earlier suggestssuggests than the aa turnaround.turnaround. traditional
Food retailing over December suggests a turnaround. Household Department Boxing Day sales. Positively, an uptick in Food Café Hardware Clothing retailing over December suggests a turnaround. Source:Source: ABSABS // SavillsSavills Research.Research. GraphGraph reflectreflect annualannual rollingrolling growthgrowth rate,rate, seasonallyseasonally adj.adj. Source: ABS / Savills Research. Graph reflects annual rolling growth rate, seasonally adj. 06 Source: ABS / Savills Research. Graph reflect annual rolling growth rate, seasonally adj. savills.com.au/researchsavills.com.au/research 33 savills.com.au/research 3 February 2018 Savills Research | Briefing Note - National Retail Q4/2017
Savills Research | Briefing Note - National Retail Q4/2017 Retail Trade Retail Trade
Retail Trade (10yr Indexed) 160 Retail Trade Growth Total 160 The differingRetail Tradeperformance Growth across Australia’s retail TotalSupermarkets The differing performance across Australia’s 150 sectors is shown with non-discretionary retailing SupermarketsHousehold Goods retail sectorsThe differing is shown performance with non-discretionary across Australia’s 150 retailingclearly outperformingretail clearly sectors outperforming is retailingshown with in discretionary non-discretionaryretailing in goods 140 HouseholdDepartment Goods Stores retailing clearly outperforming retailing in 140 DepartmentHardware & Stores Garden discretionaryover the last 10goods years. over Whilst the Supermarketlast 10 years. retailing Hardware & Garden discretionary goods over the last 10 years. 130 Whilsthas grown Supermarket over 50% reta overiling this has period, grown Department over 130 50% overWhilst this Supermarket period, retaDepartmentiling has grownStores’ over Stores’ 50%retailing over hasthis remainedperiod, Department largely unchanged Stores’ 120 120 retailingover theretailing hassame remained hasperiod. remained laIndeedrgely la rgely unchangedbetter unchanged than over expected over the same period. Indeed better than expected retail turnoverthe same figures period. from Indeed December better than were expected driven by 110 110 retaila surge turnoverretail in Food, turnover figure Supermarket sfigure froms from andDecember DecemberCafé & Restaurantwere were drivensales. bydrivenIncreased a surgeby a surgeincompetition Food, in Food, Supermarket andSupermarket a continuedand and 100 100 Café & CaféRestaurant & Restaurant sales. sales. Increased Increased competition competition slowdown in new home building has led to falls in and a continuedand a continued slowdown slowdown in new in newhome home building building 90 90 hassales led forhasto falls ledthe toin Householdfallssales in forsales the for GoodsHousehold the Household and Goods Hardware Goods 80 80 and& Garden Hardwareand Hardwaresectors. & Garden &A Garden combinationsectors. sectors. A combination Aof combination weak wage ofgrowth, weakof wage recordweak growth, wage high growth, rindebtednessecord record high highindebtedness andindebtedness increasing increasing prices for non-discretionary goods is increasingprices for non-discretionaryprices for non-discretionary goods is likelygoods to is hinder likely to hinder discretionary spending over the Source: ABS / Savills Research likelydiscretionary to hinder spending discretionary over thespending medium over term. the Source: ABS / Savills Research medium term. Source: ABS / Savills Research medium term.
HouseholdHousehold Savings Savings Rate Rate 8% HouseholdAustralia’s Savings household Rate savings rate continues to 8% Australia’s household savings rate continues to fall fall after peaking at 8.8% in September 2009, Australia’s household savings rate continues to 6% after peakingafter the at Global 8.8% Financial in September Crisis, to 2009, 5.0% afterin June the fall after peaking at 8.8% in September 2009, Global Financial2017. Whilst Crisis, there to are 5.0% concerns in June that 2017. this Whilst has 6% after the Global Financial Crisis, to 5.0% in June there arebeen concerns as a result that of a thiswealth has effect, been the as adjoining a result 4% 2017.of a wealth Whilstchart effect, indicatesthere theare that chartconcerns falls indicates to thatthe savings thisthat has falls rate to been as a result of a wealth effect, the adjoining the savingscoincide rate with coincide the beginning with the ofbeginning the resources of the 4% chart indicatesdownturn thatin 2012 falls and to falls the in savingsreturns onrate fixed 2% coincideresourcesinterest. with downturn the beginning in 2012 andof the falls resources in returns on fixed interest. downturn in 2012 and falls in returns on fixed 2%0% interest.
0%‐2%
‐2% Source: RBA / Savills Research Retail Trade by Sector & State
Source:Source: RBA ABS / Savills / Savills Research Research Clothing & Department Household Hardware & Café & Supermarket Food Other Total Retail Trade by Sector & StateFootwear Stores Goods Garden Restaurants
NSW 4.9 (4.3) 4.6 (3.6) 2.7 (4.6) 0.2 (0.4) -0.6 (3.7) -5.0 (5.2) 3.0 (6.0) 1.1 (4.6) 2.5 (3.9) Retail Trade by Sector & State Clothing & Department Household Hardware & Café & VIC Supermarket1.8 (4.5) Food2.3 (4.4) 1.6 (3.4) 3.1 (1.0) 1.5 (3.2) -2.2 (5.6) 0.9 (5.2) 9.5 (4.3)Other3.0 (3.9) Total Footwear Stores Goods Garden Restaurants QLDSupermarket 1.5 (4.6) Food1.8 (4.6)Clothing -1.9 & (1.8)Department 1.1 (0.6) Household0.2 (1.3) Hardware-4.6 (3.3) & -3.4 (3.4)Café &-0.6 (3.5)Other0.1 (3.2) Total NSW 4.9 (4.3) 4.6 (3.6) 2.7 (4.6) 0.2 (0.4) -0.6 (3.7) -5.0 (5.2) 3.0 (6.0) 1.1 (4.6) 2.5 (3.9) WA 1.8 (4.1) 0.8 (3.8)Footwear -5.1 (-1.3) Stores0.2 (0.0) -7.0Goods (1.3) -6.3Garden (1.9) Restaurants5.0 (6.6) -0.3 (5.8) -0.5 (3.3) VIC 1.8 (4.5) 2.3 (4.4) 1.6 (3.4) 3.1 (1.0) 1.5 (3.2) -2.2 (5.6) 0.9 (5.2) 9.5 (4.3) 3.0 (3.9) NSW SA 4.2 (4.2) 2.3 (4.3)3.9 (3.7)1.8 (4.1) 1.2 (4.3)5.0 (2.8) 0.6-1.4 (0.2) (-1.0) 0.22.9 (3.8) (0.1) 11.5-6.8 (1.9) (5.5) 9.2 (5.2)5.1 (6.5)-1.3 (3.7)1.4 (4.3)2.6 (3.0)2.6 (4.0) VICQLD ACT 2.2 (4.5)1.5 (4.6)-1.9 (5.3)2.8 1.8 (4.5) (4.6)-1.6 (4.7) 3.2-1.9 (3.2)-2.8 (1.8) (1.4) 4.71.11.3 (1.0)(0.6) (-0.1) 3.70.24.4 (3.5)(1.4)(1.3) 0.8-4.62.6 (4.8) (6.3)(3.3) 0.4-3.4 (5.2)3.8 (3.4) (5.2) 13.6 -0.6(2.7)9.7 (4.2)(3.5)1.9 (3.3)4.30.1 (4.0)(3.2) WA 1.8 (4.1) 0.8 (3.8) -5.1 (-1.3) 0.2 (0.0) -7.0 (1.3) -6.3 (1.9) 5.0 (6.6) -0.3 (5.8) -0.5 (3.3) QLD TAS 1.0 (4.4) 5.8 (4.2)1.7 (4.5)8.0 (4.4)-0.2 (2.5)-9.2 (1.1) -0.50.0 (0.3) (0.0) 3.2-4.9 (1.6)(0.3) -6.1-1.6 (0.5) (3.4) 9.2 -2.9(5.2) (3.3) 0.0 -2.5(0.0) (2.9)2.3 (2.8)0.4 (3.1) SA NT 2.3 (4.3)0.6 (3.7) 1.8 (4.1)2.2 (3.9) 5.0-0.9 (2.8) (2.4) -1.40.0 (-1.0) (0.0) 2.90.4 (0.5)(0.1) 11.55.0 (3.9) (1.9) -4.59.2 (7.6) (5.2) 0.0 -1.3(0.0) (3.7)0.1 (3.6)2.6 (3.0) WA 1.3 (4.0) 0.9 (3.8) -0.3 (-1.0) -0.6 (-0.2) -6.3 (1.4) -6.5 (1.8) 5.9 (6.6) -1.9 (5.3) -0.1 (3.3) ACT AUS -1.9 (5.3)2.7 (4.4)-1.6 (4.7)2.7 (4.1) -2.8 0.8(1.4) (2.9) 1.31.0 (-0.1) (0.4) -0.44.4 (2.4)(1.4) -3.30.8 (4.1) (4.8) 1.90.4 (5.3) (5.2) 2.7 13.6(4.2) (2.7)1.8 (3.6)1.9 (3.3) SA 3.8 (4.2) 3.2 (4.0) 6.4 (2.9) -0.4 (-1.2) 6.7 (0.3) 20.3 (1.9) 8.7 (4.6) 0.2 (3.8) 4.9 (3.0) TAS Source: ABS/DOE/RBA/Savills5.8 (4.2) Research;8.0 (4.4) 10yr Averages-9.2 shown (1.1) in brackets.0.0 (0.0) -4.9 (0.3) -6.1 (0.5) 9.2 (5.2) 0.0 (0.0) 2.3 (2.8) ACT -2.3 (5.4) -1.5 (4.8) 1.4 (2.3) -2.9 (-0.6) 6.4 (2.2) -3.1 (4.7) -1.1 (4.4) 14.3 (2.5) 1.5 (3.3) NT 0.6 (3.7) 2.2 (3.9) -0.9 (2.4) 0.0 (0.0) 0.4 (0.5) 5.0 (3.9) -4.5 (7.6) 0.0 (0.0) 0.1 (3.6) TAS 7.6 (4.4) 8.5 (4.5) -10.1 (0.5) 0.0 (0.0) -4.0 (0.4) -8.7 (0.8) 8.7 (4.6) 0.0 (0.0) 3.1 (2.8) AUS 2.7 (4.4) 2.7 (4.1) 0.8 (2.9) 1.0 (0.4) -0.4 (2.4) -3.3 (4.1) 1.9 (5.3) 2.7 (4.2) 1.8 (3.6) NT -1.8 (3.4) -0.5 (3.5) 0.5 (1.8) 0.0 (0.0) 3.5 (0.8) 11.3 (4.4) -3.3savills.com.au/research ( 7.1) 0.0 (0.0) -0.6 4 (3.3) Source: ABS/DOE/RBA/Savills Research; 10yr Averages shown in brackets. AUS 2.5 (4.3) 2.7 (4.1) 1.5 (3.0) 1.1 (0.3) 1.3 (2.6) -1.6 (4.3) 3.8 (5.4) 2.5 (4.0) 2.4 (3.6)
Source: ABS / Savills Research. Graph reflects annual rolling growth rate, seasonally adj. Source: ABS/DOE/RBA/Savills Research; 10yr Averages shown in brackets. savills.com.au/research 07 savills.com.au/research 4 Savills Research | Briefing National Retail
Regional & Sub-Regional Centres
Savills Research | Briefing Note - National Retail Q4/2017
Regional & Sub-Regional Centres
“Regional“Regional Centre Centre salessales soarsoar to NationalRegional Sales& Sub-Regional - Regional Sales & Sub-Regional – National to$2.51 $2.51 billion billion in in2017, 2017 the - thehighest Collectively, Regional andand Sub-RegionalSub-Regional transactionstransactions accounted for almost 40%40% ofof totaltotal investmentinvestment volumesvolumes level of investment in the captured during 2017. Transactions in the Regional highest level of investment captured during 2017. Transactions in the Regional segment segment provided a significant boost to overall numbers, sector.” provided a significant boost to overall numbers, contributing since 2007.” contributing $2.508 billion to the year-end total of $9.17 $2.51billion. billionThe last to timethe Regionalyear-end salestotal volumesof $9.17 gotbillion. close The to thislast timelevel Regionalwas back sales in 2007 volumes ($2.87bn), reached with this annual level wasvolumes 2007 ($2.87bn),trending closerwith annualto $1.0 volumesbillion since trending 2008. closer There to were $1.0 billionseveral since landmark 2008. Theredeals were that several underpinned landmark dealsoverall that underpinnedperformance overallas institutions performance traded as assetinstitutions stakes, traded including asset stakes,AMP, GPT including and ISPT. AMP, GPT and ISPT.
While the Regional segmentsegment hashas performedperformed atat elevatedelevated levelslevels duringduring 2017, 2017, Sub-Regional Sub-Regional volumes volumes are aredown down on 2016 on performance,2016 performance $1.053 - billion$1.053 compared billion compared to $1.419 tobillion. $1.419 The shiftbillion. comes The shiftafter comesfour years after of fohighur yearsinvestment of high volumes investment in the segmentvolumes inand the increased segment opportunityand increased to buyopportunity Neighbourhood to buy centresNeighbourhood in 2017, centreswhich inin some2017, caseswhich insit some at a similarcases sitprice at point.a similar price point.
NationalNational SalesSales ActivityVolume ($5m+) – Regional – Regional & Sub-Regional & Sub-Regional SC $3,500m Regional Sales $m Sub Regional Sales $m
$3,000m
$2,500m
$2,000m
$1,500m
$1,000m
$500m
$0m
Source: Savills Savills Research Research (Year to Dec-17) 08 savills.com.au/research 7 February 2018
Savills ResearchSavills Research | Briefing | NoteBriefing - National Note - National Retail Retail Q4/2017Q4/2017
NationalNational Supply Supply – Regional – Regional Centres Centres NationalNational Supply Supply – Sub-Regional – Sub-Regional Centres Centres National Supply – Regional Centres National Supply – Sub-Regional Centres Queensland was the most active in 2017, with at least four Three new Sub-Regional centres were completed in 2017, QueenslandQueensland waswas the the most most active active in 2017, in 2017, with atwith least at four least ThreeThree new Sub-Regional new Sub-Regional centres centreswere completed were completed in 2017, in 2017, RegionalRegional centres completingcentres completing extension extension projects, projects, the largest the largestincluding including Lakelands Lakelands Shopping Shopping Centre Centre (23,300sq (23,300sq m), 65m), 65 four Regional centres completing extension projects, the including Lakelands Shopping Centre (23,300sq m), 65 being Grandbeing CentralGrand CentralGarden GardTownen TownCentre CentreStage Stage2 kilometres 2 kilometres south southof Perth of PerthCBD, CBTarneitD, Tarneit Central Central (25,000sq (25,000sq kilometres south of Perth CBD, Tarneit Central (25,000sq largest(45,000sq being(45,000sq m) andGrand Westfieldm) Centraland Westfield Chermside Garden Chermside Town(33,000sq Centre (33,000sq m). Stage m). 2 m), Tarneit,m), Tarneit, 22 kilometres 22 kilometres west weof stMelbourne of Melbourne CBD CBDand and (45,000sq m) and Westfield Chermside (33,000sq m). Delacombem),Delacombe Tarneit, Town TownCentre22 kilometres Centre (16,150sq (16,150sq west m), Ballarat, ofm), Melbourne Ballarat, Victoria. Victoria. CBD and In some cases Sub-Regional or even Neighbourhood Both Lakelands and Tarneit are located within key In some cases Sub-Regional or even Neighbourhood Both DelacombeLakelands andTown Tarneit Centre are(16,150sq located m),within Ballarat, key Victoria. In some casescentres Sub-Regional are being substantially or even Neighbourhood expanded into centres Regional population growth regions. centres are being substantially expanded into Regional populationBoth growthLakelands regions. and Tarneit are located within key population are beingcentres, substantially with New expanded South Wales into Regional and Western centres, Australia with the centres, with New South Wales and Western Australia the growth regions. New Southmost Wales active and in this Western segment Australia over the the next most four years.active in The drop in Sub-Regional development in 2018 and 2019, most active in this segment over the next four years. The drop in Sub-Regional development in 2018 and 2019, this segment over the next four years. Therelative drop to thein levelSub-Regional seen in 2017, development is partly duein to2018 the and relative to the level seen in 2017, is partly due to the In Western Australia, Scentre Group has two projects either 2019,redevelopment relative to of thesome level Sub-Re seengional in 2017, centres is partly to Regional due to the InIn WesternWestern Australia, ScentreScentre Group Group has has two two projects projects either either redevelopment of some Sub-Regional centres to Regional underway or in the pipeline including Westfield Carousel and redevelopmentscale. Examples of include some BunburySub-Regional Forum centresSC in Western to Regional underwayunderway or in thethe pipeline pipeline including including Westfield Westfield Carousel Carousel and andscale. Examples include Bunbury Forum SC in Western Whitfords City, together expected to add circa 147,000 scale.Australia, Examples Stockland include Greenhills Bunbury and MarrickvilleForum SC Metro in Western in WhitfordWhitfords City, City, together together expected expected to addto add circa circa 147,000 147,000 square Australia, Stockland Greenhills and Marrickville Metro in square metres. Australia,New South Stockland Wales. Greenhills and Marrickville Metro in New metres.square metres. New South Wales. South Wales. In New South Wales, Regional centre extensions under Queensland currently leads future development in this sub- In New South Wales, Regional centre extensions under In New constructionSouth Wales, in Regional2017 were centre located extensions in the south under western Queensland Queenslandsector, currently predominantly currently leads futu throughleadsre developmentfuture new anddevelopment extension in this sub- inprojects this sub- construction in 2017 were located in the south western constructiongrowth in corridor2017 were of Camden located LGin A,the including south westernNarellan Townsector, sector,either predominantly underway predominantly orthrough in the through pipeline.new and new extension and extension projects projects Sydneygrowth growthcorridor corridor,of Camden including LGA, includingNarellan TownNarellan Centre Town and either underway or in the pipeline. Centre extension. either underway or in the pipeline. MacarthurCentre extension. Square. National Retail Supply – Regional NationalNational RetailRetail Supply – Regional (sq m) NationalNational Retail SupplySupply – – Sub-Regional Sub-Regional (sq m) 350,000 NSW VIC QLD WA SA National Retail Supply – Sub-Regional 350,000 NSW VIC QLD WA SA 100,000 NSW VIC QLD WA SA 300,000 100,000 NSW VIC QLD WA SA 300,000 250,000 80,000 250,000 80,000 200,000 200,000 60,000
150,000 60,000
150,000 40,000 100,000 40,000 100,000 50,000 20,000 50,000 20,000 0 2017 2018 2019 2020 2021 0 0 2017 2018 2019 2020 2021 Source:2017 Cordell/Savills 2018 Research 2019 2020 2021 0 Source:Source: Cordell/SavillsCordell/Savills Research Research (Year to Dec-17) Source:Source:2017 Cordell/SavillsCordell/Savills 2018 Research Research 2019 (Year to Dec-17) 2020 2021 Source: Cordell/Savills Research savills.com.au/researchsavills.com.au/research 7 09 savills.com.au/research 7 Savills Research | Briefing National Retail
SavillsNeighbourhood Research | Briefing Note - National Centres Retail Q4/2017
Savills Research | Briefing Note - National Retail Q4/2017
Neighbourhood Centres Neighbourhood Centres
NeighbourhoodNational Sales Centres– Neighbourhood Sales – National Centres NeighbourhoodNational Supply Centres – Neighbourhood Supply – National Centres Neighbourhood Centres Sales – National Neighbourhood Centres Supply – National Transactional activity in 2017 has been led by New South It is estimated that more than 400,000 square metres of new Transactional activity in 2017 has been led by New South On the supply-side there is a low volume of new Wales and Queensland, with close to 84% of national sales supply, including extensions, is in the pipeline over the next Wales andTransactional Queensland, activity with closin 2017e to 84%has been of national led by salesNew SouthNeighbourhood On the supply-sidecentre developmen there tis activity a low in thevolume pipeline of new in the sector identified from these two states. Over $1.84 five years, with just under half of this expected to come online in the sectorWales identified and Queensland, from these with two clos states.e to 84% Over of national$1.84 salesrelative Neighbourhood to Regional/Sub-Regional centre developmen sub-sector.t activity New in supplythe pipeline billion in transactions were recorded in this sub-sector during in 2019. The majority of these developments are occurring in billion inin transactionsthe sector identified were re fromcorded these in twothis states.sub-sector, Over $1.84is being relative led by to projects Regional/Sub-Regional in New South Wales sub-sector. predominantly, New supply representing2017, representingbillion 20% in transactionsof 20% national of national retail were investment retailrecorded investment volumesin this volumes sub-sector,over followed areasis beingby whereVictoria led by population and projects Queensland. in densities New South are Wales increasing predominantly, as a result of theover same therepresenting same period. period. While20% While ofsome national some institutional retail institutional investment owners owners volumes sold sold over newfollowed dwelling by Victoria supply. and Queensland. down assets,the same the majorityperiod. ofWhile assets some were institutional traded on ownersthe back sold down assets, the majority of assets were traded on the back It is estimatedOn the thatsupply-side more th anthere 400,000 is asquare low metresvolume of of new of privatedown investors assets, theselling. majority Not of asurprisingly,ssets were traded centres on thewith back It is estimated that more than 400,000 square metres of of private investors selling. Not surprisingly, centres with new supply,Neighbourhood including extensionscentre development, is in the pipeline activity over in thethe pipeline long leasesof private anchored investors by Colesselling. or Not Woolworths surprisingly, were centres highly with new supply, including extensions, is in the pipeline over the long leases anchored by Coles or Woolworths were highly next fiverelative years, to with Regional/Sub-Regional just under half of this expected sub-sector. to come New supply coveted,coveted,long asas evidenced leasesevidenced anchored by by the the bysale saleColes of ofWoodcroft or Woodcroft Woolworths Village, Village, were in highlyinonline nextin 2019. five years, The withmajority just underof these half ofdevelopments this expected areto come coveted, as evidenced by the sale of Woodcroft Village, in isonline being in led 2019. by projects The majority in New of Souththese Walesdevelopments predominantly, are Sydney’sSydney’s North North West, West, on on a a passing passing yield yield of of 5.54%. 5.54%. occurring in areas where population densities are increasing Sydney’s North West, on a passing yield of 5.54%. followedoccurring by in Victoriaareas where and Queensland.population densities are increasing as a result of new dwelling supply. Institutions were the second largest net seller behind privates. as a result of new dwelling supply. Institutions were the second largest net seller behind The redevelopment/refurbishment of existing centres remains CharterInstitutions Hall recently were announced the second their strategylargest netto divestseller non-behind privates. Charter Hall recently announced their strategy to The aredevelopment/refurbishment priority to owners, with a largeof existingamount centresof construction core Neighbourhoodprivates. Charter centres,Hall recently exchanging announced contracts their strategy for to The redevelopment/refurbishment of existing centres divest non-coredivest non-core Neighbourhood Neighbourhood centres, centres, exchanging exchanging remains worksremains a priorityalso a underwaypriority to owners, to across owners, with the awithcountry. large a large amount amount of of contractscentres across for threeNew Southcentres Wales, across Tasmania, Tasmania, South South Australia construction works also underway across the country. and Queensland.contracts forVicinity three Centres centres and across Sentinel Tasmania, followed South a construction works also underway across the country. AustraliaAustralia and Queensland. and Queensland. Vicinity VicinityCentres, Centres, Primewest Primewest and and Sentinelsimilar strategy followed through a similar 2017 strategy taking throughadvantage 2017 of thetaking weight of capitalSentinel from private followed investors a similar to diveststrategy non-core through assets 2017 and taking advantageadvantage of the weight of the ofweight capit alof fromcapit alprivate from privateinvestors investors to to redirect or reinvest funds. divest non-coredivest non-core assets andassets redirect and re ordirect reinvest or reinvest funds. funds.
NationalNationalNational SalesSales Volume Activity Sales Volume – ($5m+) Neighbourhood – – Neighbourhood Neighbourhood Centre Centre Centre NationalNationalNational Retail RetailRetailSupply Supply – Neighbourhood – Neighbourhood Centres Centres Centres (sq m)
$2,500m $2,500m NSW NSWVIC VICQLD QLDWA WASA SA 180,000 180,000 NSW NSWVIC VICQLD QLD WA WA SA SA
160,000 160,000 $2,000m $2,000m 140,000 140,000
120,000 120,000 $1,500m $1,500m 100,000 100,000
$1,000m $1,000m 80,000 80,000
60,000 60,000 $500m $500m 40,000 40,000
20,000 20,000 $0m $0m 0 0 20172017 2018 2018 2019 2019 2020 2020 2021 2021 Source: Savills Research Source: Cordell/Savills Research Source:Source: Savills Savills Research Research (Year to Dec-17) Source: Source:Cordell/Savills Cordell/Savills Research Research (Year to Dec-17)
10 savills.com.au/researchsavills.com.au/research 8 8 February 2018
Savills Research | Briefing Note - National Retail Q4/2017 Large Format Retail Savills Research | Briefing Note - National Retail Q4/2017
Large Format Centres Large Format Centres
National Sales – Large Format Retail National Supply – Large Format Retail National Sales – Large Format Retail National Supply – Large Format Retail National Sales – Large Format Retail National Supply – Large Format Retail A massiveA massive upturn upturn in Large in Large Format Format sales sales activity activity has has elevated elevated InvestorInvestor confidenceconfidence in in the the sub-sector sub-sector is contributingis contributing to anto an Athe massive thesub-sector sub-sector upturn intoin Largeinto new newFormat territory. terri salestory. Representing activityRepresenting has elevated 18% 18% of of Investorupswingupswing confidence inin new new supply supplyin the over sub-sectorover the the next next is five contributing five years. years. More toMore thanan than thenational sub-sectornational retail retail investment into investment new volumes,terri volutory.mes, Representingmore more than than $1.63 $1.6318% billion billionof upswing900,000800,000 in new squaresquare supply metresmetres over ofofthe newLarge next Large fiveFormat years. Format supply More supply (includingthan is nationalin salesin sales retail were were investment recorded recorded volu inin 2017,mes,2017, themorethe highest highestthan $1.63level level seen billion seen in the 900,000underwayrefurbishments) square or metresin is underwaythe ofpipeline new or inLarge theover pipeline Formatthis over periodsupply this andperiodis inin salesthelast last were 10-years. 10-years. recorded Since Since in 2017,2008, 2008, the the highestsub-sector sub-sector level has seen has turned inturned the over underwayapproximatelyand approximately or in half the of half thispipeline of is this in New is overin SouthNew this South Wales. period Wales. and last 10-years. Since 2008, the sub-sector has turned over approximately half of this is in New South Wales. overan an average average of ofapproximatel approximatelyy $750 $750 million million annually, annually, with an average of approximately $750 million annually, with Technology, globalisation, big data, sustainability and of with 20162016 volumes volumes sitting sitting at circaat circa $700 $700 million. million. The rise The in rise2017 Technology, globalisation, big data, sustainability and of 2016 volumes sitting at circa $700 million. The rise in 2017 Technology,course, e-commerce globalisation, are big just data, some sustainability of the forces anddriving of this in 2017volumes volumes is underpinned is on the by back eight of significant by eight $50 significant million + course, e-commerce are just some of the forces driving this volumes is underpinned by eight significant $50 million + course,change e-commerce across retail are justand some logistics. of the Large forces Format driving thiscentres $50 transactions.million + transactions. The largest The largest being being the acquisitionthe acquisition of twoof change across retail and logistics. Large Format centres transactions. The largest being the acquisition of two changenow acrossincorporate retail aand broad logistics. tenant Large mix baseFormat – theycentres are no two centres byby listedlisted Aventus Aventus Property Property Group Group for for $436 $436 million million in in now incorporate a broad tenant mix base – they are no centres by listed Aventus Property Group for $436 million in nowlonger incorporate exclusively a broad selling tenant white mixor brown base goods,– they withare nofitness Q2/2017Q2-2017. (Home Aventus Hub Castle announced Hill and their Home expansion Hub Marsden strategy longer exclusively selling white or brown goods, with fitness Q2-2017.back inAventus 2016 and announced now has motheirre thanexpansion 20 centres strategy in their longercentres,centres, exclusively leisureleisure selling andand even whiteeven big or bigbox brown boxpharmacies goods,pharmacies withnow fitnessanow common a backPark. inAventus 2016 and announced now has their mo reexpansion than 20 centresstrategy inback their in centres, leisure and even big box pharmacies now a national portfolio. commonfeature. Somefeature. of theseSome centresof these are centres also being are alsoincorporated being national2016 and portfolio. now has more than 20 centres in their national common feature. Some of these centres are also being incorporatedinto or adjoining into or industrial adjoining industrialor business or business parks, parks,a strategy a portfolio with a total value of $1.85 billion. incorporated into or adjoining industrial or business parks, a Despite the ongoing evolution of online retail and new strategywhich allows which consumersallows consumers to have to greater have greater access access to goods, to Despite the ongoing evolution of online retail and new strategy which allows consumers to have greater access to Despite the ongoing evolution of online retail and new entrants both discretionary and non-discretionary, in areas that were entrantsentrants to the to Australian the Australian land landscape,scape, investment investment in this in this sub- sub-goods,goods, both both discretionary discretionary and and non-discretionary, non-discretionary, in inareas areas to the Australian landscape, investment in this sub-sector is previously under-supplied. On that note, owner confidence sectorsector is one is ofone the of strongest the strongest nationally. nationally. The The largest largest shift shift has has thatthat were were previously previously under-supplied. under-supplied. On On that that note, note, owner owner one beenof the in strongest institutional nationally. capital (funds/trusts),The largest shift which has accounted been in confidenceto develop/redevelop to develop/redevelo in the sub-sectorp in the sub-sector reflects the reflects evolving beeninstitutional in institutional capital (funds/trusts),capital (funds/trusts), which accounted which accounted for about confidence to develop/redevelop in the sub-sector reflects for aboutfor about 60% 60% of the of acquisitionsthe acquisitions in 2017, in 2017, almost almost double double thethe landscapeevolving evolving landscape and landscape desire and to and remaindesire desire tosustainable toremain remain sustainable insustainable the future. in in 60%the of activitythe acquisitions seen in 2016. in 2017, almost double the activity the future. theseen activity in 2016. seen in 2016. the future.
NationalNationalNational SalesSales Sales VolumeActivity Volume –($5m+) Large – Large – Format Large Format Format NationalNationalNational Retail RetailRetail Supply SupplySupply – Large –– LargeLarge Format FormatFormat (sq m)
$1,800m NSW VIC QLD WA SA $1,800m NSW NSWVIC VICQLD QLD WA WA SA SA ACT ACT 360,000360,000 NSW VIC QLD WA SA
$1,600m$1,600m 320,000320,000
$1,400m$1,400m 280,000280,000
$1,200m$1,200m 240,000240,000 $1,000m $1,000m 200,000200,000 $800m $800m 160,000160,000 $600m $600m 120,000120,000 $400m$400m 80,00080,000 $200m$200m 40,00040,000 $0m $0m 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Source: Savills Research Source: Cordell/Savills Research Source:Source: Savills Savills Research Research (Year to Dec-17) Source:Source: Cordell/Savills Cordell/Savills Research Research (Year to Dec-17)
savills.com.au/research 9 11 savills.com.au/research 9 Savills Research | Briefing National Retail
NSW Savills Research | Briefing Note - National Retail Q4/2017
NSW
“Sydney will remain the Overview - NSW
“Sydneydefensive will location remain with the New South Wales continues to be one of the top performing statesOverview nationally. – NSW defensivecontinued location population with growth New South Wales continues to be one of the top performing Thestates burgeoning nationally. supply pipeline indicates confidence in the continuedand overseas population money fuellinggrowth sector, which also appears to be linked to the ramp-up in stateThe burgeoningled infrastructure supply pipelinespending. indicates On the confidence back of the in the andinvestment overseas demand.” money fuelling constructionsector, which alsopipeline, appears labour to be marketlinked to conditionsthe ramp-up have in state improvedled infrastructure with the spending. state’s unemploymentOn the back of ratethe constructionnow the investment demand.” lowestpipeline, nationally. labour market conditions have improved with the Steven Lerche state’s unemployment rate now the lowest nationally. Population growth remains buoyed by interstate and National Director | Retail Investments/Services | Sydney Population growth remains buoyed by interstate and overseas Steven Lerche overseas migration, not only providing a boost to retail trade migration, not only providing a boost to retail trade numbers National Director | Retail Investments/Services | Sydney numbers of late but indicative of the strength of the New of late but indicative of the strength of the New South Wales South Wales economy. economy.
NSW Retail Economic Drivers
As at AUS NSW GDP / SFD Growth Sep-17 2.2 (2.6) 3.1 (2.7)
Population Growth Jun-17 1.6 (1.7) 1.6 (1.4)
Employment Growth Nov-17 3.1 (1.6) 2.9 (1.6) Unemployment Rate Nov-17 5.6 (5.4) 4.8 (5.3) F/T Earnings Growth May-17 2.1 (3.2) 1.3 (3.3) House Price Growth Sep-17 5.1 (5.1) 1.7 (6.1)
Apartment Price Growth Sep-17 3.8 (4.4) 1.0 (5.9)
Retail Trade Growth Dec-17 2.4 (3.6) 2.6 (4.0) - Food Dec-17 2.7 (4.1) 3.9 (3.7)
- Dept Stores Dec-17 1.1 (0.3) 0.6 (0.2)
- H/H Goods Dec-17 1.3 (2.6) 0.2 (3.8) - Clothing Dec-17 1.5 (3.0) 1.2 (4.3) - Cafes Dec-17 3.8 (5.4) 5.1 (6.5)
Source: ABS / Savills Research. Note: 10yr Average shown in brackets
12 savills.com.au/research 10 February 2018
Sales Activity – NSW Supply Pipeline – NSW Retail investment flows ($5m+) reached $4.12 billion during The New South Wales supply pipeline is expected to grow 2017, representing an 86% increase on 2016 and the highest steadily from 2018, driven mainly by a wave of new Large level of the last decade. Growth in activity underpinned the Format space and Neighbourhood centres. In contrast, the record numbers seen nationally, accounting for almost half of pipeline for Regional development activity is characterised total $9.17 billion captured during the year. predominantly by extension projects as investors look to Activity was consistent through the year as institutions traded reposition assets over the medium-term. assets, mostly $100 million +, with stakes in a number assets Two Regional centres completed extension projects during changing hands. The largest deal was the $1.1 billion trade 2017, including Narellan Town Centre (36,000sq m) and between Vicinity and GIC where Chatswood Chase (49%) was Macarthur Square Shopping Centre (ca.15,700sq m). New swapped for The Galeries (50%), The Strand Arcade (50%) Bunnings space was also prominent in the Large Format and The Queen Victoria Building (50%). The Large Format category with centres completed in Bellambi (15,600sq m) sector grew from $202 million in 2016 to a record $1.0 billion and Bonnyrigg (15,400sq m). in 2017, laying the foundation for strong volumes nationally. Aventus Property Group accounted for almost half of this The Large Format sector continues to be a major beneficiary activity ($436m), with the acquisition of Home Hub Castle Hill of investment over the next four years, strengthened by and Home Hub Marsden Park. More recently, Fortius acquired a pipeline of new and/or refurbished centres planned by Home HQ Artarmon for $140.1 million from Blackstone Bunnings and Home Consortium. Property Group. Sales Activity ($5m+) by Retail Type Supply Pipeline by Retail Type (sq m)
$4,500m RegionalRegional Sub RegionalSub Regional Large FormatLarge Format Regional Sub Regional Neighbourhood $4,500m City Centre Freestanding Neighbourhood Regional Sub Regional Neighbourhood City Centre Freestanding Neighbourhood 400,000 400,000CBD CentreCBD Centre Large FormatLarge FormatShops Shops $4,000m$4,000m OtherOther Shops Shops $3,500m $3,500m 300,000 $3,000m 300,000 $3,000m $2,500m $2,500m $2,000m 200,000 $2,000m 200,000 $1,500m $1,500m $1,000m 100,000 $1,000m 100,000 $500m $500m $0m 0 $0m 20170 2018 2019 2020 2021 2017 2018 2019 2020 2021 Source: Savills Research (Year to Dec-17) Source: Cordell/Savills Research (Year to Dec-17)
savills.com.au/research 13 Savills Research | Briefing National Retail
Monica Mondkar VIC Associate Director | Research | Victoria
Savills Research | Briefing Note - National Retail Q4/2017
VIC
“Retail investments in Victoria Overview – VIC “Retail investments in Victoria Overview – VIC remain highly sought after, due Victoria has one of the highest retail trade growth nationally, remain highly sought after underpinnedVictoria has bythe its highest population retail and trade economic growth growth rates nationally,rates, to strong underlying population whichunderpinned are also bythe its highest population nationally. and However, economic a slowdowngrowth rates, dueand to economicstrong underlying growth.” inwhich the retail are alsosector the is highestevident nationally.in the state’s However, retail trade a slowdown data relativein the retailto previous sector years.is evident Higher in the household state’s retail debt, trade weak data population and economic wagerelative growth to previous and moderating years. Higher housing household construction debt, has weak impactedwage growth discretionary and moderating spending in housingsome sub-sectors construction such has growth.”Pat De Maria asimpacted ‘hardware discretionary & garden’ and spending ‘café & inrestaurants’. some sub-sectors such Associate Director | Retail Investments | Victoria as ‘hardware & garden’ and ‘café & restaurants’. A strong rise in full-time jobs points towards sustained Pat De Maria consumerA strong demandrise in lookingfull-time forward. jobs points However, towards transactions sustained Associate Director | Retail Investments | Victoria willconsumer be limited demand by the lookingavailabilit forward.y of assets However, to purchase transactions and futurewill be supply limited will by focusthe availability on locations of assetswith high to populationpurchase and forecasts.future supply will focus on locations with high population forecasts. Vic Retail Economic Drivers
As at AUS Vic GDP / SFD Growth Sep-17 2.2 (2.6) 4.2 (3.0) Population Growth Jun-17 1.6 (1.7) 2.3 (2.1) Employment Growth Nov-17 3.1 (1.6) 3.0 (2.1)
Unemployment Rate Nov-17 5.6 (5.4) 5.9 (5.6)
F/T Earnings Growth May-17 2.1 (3.2) 3.7 (3.6) House Price Growth Sep-17 5.1 (5.1) 11.5 (6.6) Apartment Price Growth Sep-17 3.8 (4.4) 6.2 (4.4)
Retail Trade Growth Dec-17 2.4 (3.6) 4.3 (4.0) - Food Dec-17 2.7 (4.1) 2.8 (4.5) - Dept Stores Dec-17 1.1 (0.3) 4.7 (1.0) - H/H Goods Dec-17 1.3 (2.6) 3.7 (3.5) - Clothing Dec-17 1.5 (3.0) 3.2 (3.2) - Cafes Dec-17 3.8 (5.4) 3.8 (5.2)
Source: ABS / Savills Research. Note: 10yr Average shown in brackets
14 savills.com.au/research 12 February 2018
SavillsSavills Research Research | Briefing | Briefing Note Note- National - National Retail Retail Q4/2017Q4/2017
SalesSalesSales Activity Activity – VIC SupplySupplySupply Pipeline Pipeline - VIC
Retail sales volumes ($5m+) declined 20% in the 12 months Customer expectations to match global trends as well RetailRetail sales sales volumes volumes ($5m+) ($5m+) declined declined 20% 20%in the in 12 the months 12 months Customer Customer expectations expectations to matchto match global global trends, trends, and and to December 2017 to $1.46 billion, yet were 5% above the 10- as competition from online sales has encouraged many to Decemberto December 2017 2017 to $1.46 to $1.46 billion, billion, yet were yet were 5% above 5% above the thecompetition competition from fromonline online sales sales has hasencouraged encouraged many many year10-year 10-yearaverage. average. average. Results Results wereResults were tempered were tempered tempered due todue a lowerdueto a to lowervolume a lower landlords landlordslandlords to redevelop toto redevelopredevelop or expand oror expand expand their their centres.their centres. centres. Supply in 2017 ofvolume stockvolume ofoffered stock of stockfor offered sale. offered Infor 2017, sale.for 31 sale.In shopping2017, In 2017, 31 centres shopping31 shopping were was driven by construction activity in both Neighbourhood soldcentres comparedcentres were were sold to 35soldcompared in compared2016. toAs 35 technology-driven to in 35 2016. in 2016. As technology- As disruption technology- SupplyandSupply in Sub-Regional2017 in 2017 was drivenwas centre driven by construction categories.by construction activityThe activitymost in both prominent in both risesdriven drivenin disruption the disruptionretail risector,ses riinses the investors in retail the retailsect are or,sect becoming investorsor, investors becomediscerning become Neighbourhood developmentNeighbourhood and completed Sub-Regionaland Sub-Regional recently centre centre incategories. the categories. Sub-Regional The The withdiscerning discerningtheir selectionwith withtheir oftheirselection assets, selection offavouring assets, of assets, clearlyprime clearly assetsfavouring favouring with most categorymost prominent prominent includes development developmentTarneit Central completed completed (25,000sq recently m),recently whilein the fivein the new longprime primecovenants, assets assets with a trendwithsolid solid whichfinanc financial is results,likelyial results, to agrow trend a strongertrend which which isand Sub-Regionalis NeighbourhoodSub-Regional category category centres includes includes also Tarneit opened Tarneit Central over Central (25,000the same(25,000 sq period. sq impactlikelylikely to future grow to grow strongersales stronger volume. and impactand impact future future sales sales volume. volume. m), whileAdditionally,m), while five new five Neighbourhthreenew Neighbourh Neighbourhoodood centresood centres centresalso opened also expanded opened over over their floor space to meet increasing demand from rising population Regional and Sub-Regional centres accounted for nearly half the samethe same period. period. Additionally Additionally, three, three Neighbourhood Neighbourhood centres centres in the state. ofRegional theRegional transaction and andSub-Regional volume Sub-Regional ($703 centres million) centres accounted across accounted just for two nearly for sales. nearly expanded expanded their floortheir spacefloor space to meet to meetincreasing increasing demand demand from from half of the transaction volume ($703 million) across just two rising population in the state. Thesehalf remain of the highly transaction sought-after volume asset($703 classes, million) across reflected just twoby Forecastrising population supply inpipeline the state. is expected to moderate over the sales. These remain highly sought-after asset classes, Highpointsales. shopping These remain centre’s highly sale (25% sought-after share) to GPTasset for classes,$660 next two years with major supply coming online through the reflected by Highpoint shopping centre’s sale (25% share) Forecast supply pipeline is expected to moderate over the millionreflected on a tight by yieldHighpoint of 4.21%, shopping also the centre’s largest sale transaction (25% share) of refurbishmentForecast supply and pipeline expansion is expected works toat moderateWestfield over Knox the and to GPTto GPTfor $660 for $660 million million on a ontight a tightyield yieldof 4.21%, of 4.21%, also alsothe thenext twonext years two years with majorwith major supply supply coming coming online online through through the the 2017 in Victoria. Trusts dominated the buyer type, accounting the Jam Factory by the end of the year 2020. largestlargest transaction transaction of 2017. of 2017. Trusts Trusts dominated dominated the buyerthe buyer refurbishment refurbishment and expansionand expansion works works at Westfield at Westfield Knox Knox and and for 45% share of the total sales. type,type, accounting accounting for 45% for 45% shar eshar of thee of total the totalsales. sales. the Jamthe JamFactory Factory by the by end the ofend the of year the 2020.year 2020.
SalesSalesSales ActivityActivity Activity ($5m+)by Retail by byRetail Type Retail Type Type SupplySupplySupply Pipeline Pipeline Pipeline by Retail byby Retail Retail Type Type Type (sq m) 100,000 Regional Sub Regional Neighbourhood Large Format $3,000m$3,000m RegionalRegional Sub RegionalSub Regional 100,000 Regional Sub Regional Neighbourhood Large Format Large FormatLarge Format City CentreCity Centre $2,500m$2,500m Freestanding Neighbourhood Freestanding Neighbourhood 80,000 80,000 Other Other Shops Shops $2,000m$2,000m 60,000 60,000 $1,500m$1,500m
40,000 40,000 $1,000m$1,000m
$500m $500m 20,000 20,000
$0m $0m 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Source: Savills Research (Year to Dec-17) Source:Source: Cordell/Savills Cordell/Savills Research Research (Year to Dec-17) Source:Source: Savills SavillsResearch Research Source: Cordell/Savills Research savills.com.au/research 15
savills.com.au/researchsavills.com.au/research 13 13 Savills Research | Briefing National Retail
QLD Savills Research | Briefing Note - National Retail Q4/2017
QLD
“The investment appetite for Overview – QLD
“The investment appetite for Overview – QLD shopping centre opportunities Positive signs are emerging in Queensland on the back of shoppingacross Queensland centre opportunities matches the improvementsPositive signs arein commodityemerging inprices Queensland and record on the export back of growth.improvements The turnaround in commodity in bu pricessiness and investment record export after growth.the acrossgains Queenslandwe are beginning matches to see in wind-downThe turnaround in LNG in constructionbusiness investment works has after been the earlier wind-down than expected.in LNG construction Further improvements works has beenare expected earlier than in 2018. anticipated. thethe gains economy. we are beginning to Further improvements are expected in 2018. Most telling is the rise of interstate migration numbers, see in the economy.” whichMost aretelling now is the the largest rise ofsince interstate 2008 and migration more recently, numbers, thewhich upswing are now in jobthe ads.largest As sincea result, 2008 the and population more recently, growth the PeterWe Tyson expect Queensland to rateupswing is at in jobits ads.highest As ayear-on-year result, the population growth rategrowth since rate is Nationalcontinue Director | Retail to Investments draw one | Queensland of the Decemberat its highest 2013. year-on-year Most of the growth gains seenrate since recent Decemberly have been 2013. strongerMost of thanthe gainsexpected seen supporting recently anhave improved been stronger long-term than highest shares of capital inflows outlookexpected for supporting the state. an improved long-term outlook for the state. nationally as population, QLD Retail Economic Drivers
employment and business As at AUS Qld GDP / SFD Growth Sep-17 2.2 (2.6) 3.0 (2.0) investment further strengthens.” Population Growth Jun-17 1.6 (1.7) 1.6 (1.8)
Peter Tyson Employment Growth Nov-17 3.1 (1.6) 4.8 (1.4) National Director | Retail Investments | Queensland Unemployment Rate Nov-17 5.6 (5.4) 6.1 (5.6) F/T Earnings Growth May-17 2.1 (3.2) 2.5 (3.7) House Price Growth Sep-17 5.1 (5.1) 4.0 (2.9)
Apartment Price Growth Sep-17 3.8 (4.4) 1.1 (1.7)
Retail Trade Growth Dec-17 2.4 (3.6) 0.4 (3.1) - Food Dec-17 2.7 (4.1) 1.7 (4.5)
- Dept Stores Dec-17 1.1 (0.3) -0.5 (0.3)
- H/H Goods Dec-17 1.3 (2.6) 3.2 (1.6) - Clothing Dec-17 1.5 (3.0) -0.2 (2.5) - Cafes Dec-17 3.8 (5.4) -2.9 (3.3)
Source: ABS / Savills Research. Note: 10yr Average shown in brackets
16 savills.com.au/research 14 February 2018
Savills Research | Briefing Note - National Retail Q4/2017
Savills Research | Briefing Note - National Retail Q4/2017
Sales ActivityActivity – - QLD QLD SupplySupply Pipeline Pipeline – QLD – QLD Sales Activity – QLD Supply Pipeline – QLD Queensland retailretail investmentinvestment activity activity reached reached its its highest highest level The QueenslandThe Queensland supply supply pipelin pipelinee is expected is expected build to steadily pick-up from inlevel the inlast Queenslandthe decade last decade with retail $2.7 withinvestment billion $2.7 in billionsales activity ($5m+)in salesreached recorded ($5m+) its highest in over 2019theThe next onwards.Queensland three years. supply pipeline is expected build steadily therecorded yearlevel to in December 2017.in the Thelast 2017. statedecade Theaccounted with state $2.7 accounted for billion almost in for 30%sales almost of ($5m+) over the next three years. Recent completed 2017 Regional developments include 30%national of recorded nationalinvestment investment in volumes2017. The volumesand state represented accounted and represented a 28%for almost rise a on28% 30% Recent of completed 2017 Regional developments include Dexus’ Willows Shopping Centre extension in Townsville rise2016. on More 2016.national than More investment half than of halfthe volumes oftotal the andvalue total represented investedvalue invested was a 28% for was rise Dexus’on Recent Willows completed Shopping 2017 Centre Regional extension developments in Townsville include (33,800sq m) and Scentre Group’s Westfield Chermside forassets assets in2016. the in the $100 More $100 million than million half+ segment,+ ofsegment, the total a trend a valuetrend which whichinvested hasn’t hasn’t was (33,800for Dexus’ sq m) Willows and Scentre Shopping Group’s Centre Westfield extension Chermside in Townsville extension (33,000sq m), which is now their largest Australian been seenassets since in 2012.the $100 million + segment, a trend which hasn’textension (33,800 (33,000 sq m)sq andm) – Scentrenow their Group’s largest AustralianWestfield Chermsideasset been seen since 2012. (156,000assetextension sq (156,000sq m). (33,000 m). sq m) – now their largest Australian asset The sale of Indooroopilly Shopping Centre (50%) for $795 The sale of Indooroopilly Shopping Centre (50%) for $800 New(156,000 Large sq Format m). supply is set to feature in the Queensland million to AMP Capital Investors was the largest transaction million toThe AMP sale Capital of Indooroopilly Investors wasShopping the largest Centre transaction (50%) for $800New supply Large pipeline.Format Thesupply majority is setcan beto attributedfeature in to theBunnings for 2017,million elevating to AMP Regional Capital sale Investor volumess was to the a decade largest transactionhigh. New Large Format supply is set to feature in the for 2017, elevating Regional sale volumes to a decade high. Queensland(ca. 140,000sq supply pipeline. m), however, The majority Home canConsortium be attributed is starting for 2017, elevating Regional sale volumes to a decade high. Queensland supply pipeline. The majority can be attributed The upswing in investment volumes during 2017 follows two to Bunningsto ramp (147,865 up conversions sq m), however, of former Home Masters Consortium stores. Expect is to to Bunnings (147,865 sq m), however, Home Consortium is strongThe upswing years inof investmentsales through volumes 2015 duringand 2016, 2017 on follows the back two of startingsee toa surgeramp upin newconversi Neighbourhoodons of former development Masters stores. projects in The upswing in investment volumes during 2017 follows two starting to ramp up conversions of former Masters stores. institutionsstrong years trading of sales and through off-shore 2015 investors and 2016, buying. on the back Expect2019, to seewith a more surge than in new 20 Neighbourhoodcentres in the pipeline. development of institutionsstrong tradingyears of andsales off-shore through 2015investors and 2016,buying, on the the backprojects Expect in 2019, to see with a surgemore thanin new 20 Neighbourhood centres in the pipeline. development most well-knownof institutions being trading Blackstone. and off-shore investors buying, the projects in 2019, with more than 20 centres in the pipeline. most well-known being Blackstone.
Sales Activity by Retail Type Supply Pipeline by Retail Type Sales ActivitySales Activity ($5m+) byby RetailRetail TypeType SupplySupply Pipeline Pipeline by by Retail Retail Type Type (sq m) 300,000 Regional Sub Regional Neighbourhood Large Format $3,000m Regional Sub Regional 300,000 $3,000m Regional Sub Regional Regional Sub Regional Neighbourhood Large Format Large Format City Centre Large Format City Centre 250,000 $2,500m Freestanding Neighbourhood 250,000 $2,500m Freestanding Neighbourhood Other Shops Other Shops $2,000m 200,000 $2,000m 200,000
$1,500m 150,000 $1,500m 150,000
$1,000m $1,000m 100,000 100,000
$500m $500m 50,000 50,000
$0m $0m 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Source: Savills SavillsSource: Research Research Savills Research (Year to Dec-17) Source:Source: Cordell/SavillsSource: Cordell/Savills Cordell/Savills Research Research Research (Year to Dec-17)
savills.com.au/research 17
savills.com.au/researchsavills.com.au/research 15 15 Savills Research | Briefing National Retail
WA
Savills Research | Briefing Note - National Retail Q4/2017
WA
“Billions of dollars are being Overview – WA “Billions of dollars are being Overview – WA There have been improvements in the state’s economy but invested in redeveloping Perth’s There have been improvements in the state’s economy but it invested in redeveloping it is segmented, with retail sales growth in still weak in the is segmented, with retail sales growth still weak in the wake shopping centres, reflecting a wake of low wages growth. There are green shoots Perth’s shopping centres, emerging,of low wages with growth. the labourThere aremarket green showingshoots emerging, signs of with high level of long-term the labour market showing signs of improvement, particularly reflecting a high level of long- improvement, particularly in transport and logistics job confidence in the state’s retail advertisements,in transport and suggesting logistics job that advertisements, e-commerce, in suggesting addition to that term confidence in the state’s lowere-commerce, levels of in disposableaddition to lowerincome levels is stillof disposable placing some income sector.” pressureis still placing on household some pressure spending on in household the short-term. spending in the short-term. retail sector.” OnOn thethe supply-side, supply-side, there there are are significant significant developments developments both both Chris Ireland inin shoppingshopping centres centres and and the the city city centre, centre, indicating indicating that confidence there Director | Retail Investments/Services | Perth is confidence on the ground for long-term performance. Chris Ireland on the ground for long-term performance. Director | Retail Investments/Services | Perth
WA Retail Economic Drivers
As at AUS WA GDP / SFD Growth Sep-17 2.2 (2.6) -4.2 (2.0) Population Growth Jun-17 1.6 (1.7) 0.8 (2.1) Employment Growth Nov-17 3.1 (1.6) 2.8 (1.6)
Unemployment Rate Nov-17 5.6 (5.4) 6.0 (4.8)
F/T Earnings Growth May-17 2.1 (3.2) 0.0 (4.2) House Price Growth Sep-17 5.1 (5.1) -3.1 (0.5) Apartment Price Growth Sep-17 3.8 (4.4) -6.9 (0.7)
Retail Trade Growth Dec-17 2.4 (3.6) -0.1 (3.3)
- Food Dec-17 2.7 (4.1) 0.9 (3.8) - Dept Stores Dec-17 1.1 (0.3) -0.6 (-0.2) - H/H Goods Dec-17 1.3 (2.6) -6.3 (1.4)
- Clothing Dec-17 1.5 (3.0) -0.3 (-1.0)
- Cafes Dec-17 3.8 (5.4) 5.9 (6.6)
Source: ABS / Savills Research. Note: 10yr Average shown in brackets
18
savills.com.au/research 16 February 2018
Sales Activity – WA Supply Pipeline – WA Retail investment volumes ($5m+) have surpassed 2016 by A spate of shopping centre redevelopments is underway 5% to reach $614 million in the year to December 2017. While or in planning across the state. The shift in planning follows activity has been predominantly led by Large Format sales, growing competition from online retail, population growth and volumes were boosted following the sale of a 50% stake in the state government legislation changes which previously Rockingham Centre to AMP Capital Investors in November capped retail space to 80,000 square metres, finally being for $300 million. removed. GDI Property recently acquired Ikea Perth for $143.5 million. Representing upwards of $3 billion in investment in the Perth Other major Large Format sales include Australasian Property market, many of the centres being redeveloped have not Investments (APiL) acquisitions of Joondalup Gate for $57.8 had any refurbishments or upgrades for 15-20 years. Major million from a local syndicate and 5 Clayton Street, Midland redevelopments are also underway in the CBD. Charter Hall for $30.75 million from Primewest. is redeveloping Raine Square retail centre through a $240 million project, including the construction of a new hotel tower Neighbourhood centres remain tightly held with limited activity and cinema. Forrest Chase, owned by ISPT, is undergoing reported in 2017 compared to the previous five years. Any a $100 million redevelopment and upgrades have just been unfulfilled demand in this segment is likely to be redirected completed at Plaza Arcade to accommodate a two-level into opportunities over the next 12 to 18 months. tenancy to house Uniqlo, a Japanese retailer making their first foray into Perth market.
Sales Activity ($5m+) by Retail Type 250,000SupplyRegional PipelineSub by Regional Retail TypeNeighbourhood (sq m) Large Format
Regional Sub Regional 250,000 Regional Sub Regional Neighbourhood Large Format $1,400m Large Format City Centre 200,000 Regional Sub Regional $1,200m$1,400mFreestanding Neighbourhood Large Format City Centre 200,000 Other Shops $1,000m$1,200m Freestanding Neighbourhood 150,000 Other Shops 150,000 $800m$1,000m 100,000 $600m $800m 100,000 $400m $600m 50,000
$200m $400m 50,000 0 $0m $200m 2017 2018 2019 2020 2021 0 $0m 2017 2018 2019 2020 2021 Source: Savills Research (Year to Dec-17) Source: Cordell/Savills Research (Year to Dec-17)
savills.com.au/research 19 Savills Research | Briefing National Retail
SA Savills Research | Briefing Note - National Retail Q4/2017
SA
“South Australia will continue to Overview – SA “Record infrastructure be on the radar of international ThereOverview are a number – SA of green shoots emerging in South spending is buoying job Australia, with the State Government boosting its retailers with ambitious plans to infrastructureThere are a progra numberm toof create green jobs shoots during emerging the transition in South growth, helping to support periodAustralia, between with the naval State Governmentshipbuilding boostingand the itsclosure infrastructure of reshape the grocery landscape.” manufacturing.program to create This jobshas duringalready thebuoyed transition job growth,period betweenwith investment demand in a thenaval state shipbuilding recording theand largestthe closure year-on-year of manufacturing. growth rate This nationallyhas already in job buoyed advertisem job entsgrowth, in recent with months. the state recording marketRino Carpinelli that is traditionally the largest year-on-year growth rate nationally in job Managing Director | South Australia Whileadvertisements this has inyet recent to signmonths.ificantly change consumer tightly held.” spending,While this employment has yet to significantly is growing andchange overall consumer confidence spending, is improving.employment Retail is growingtrade number and overall are up, confidence and some is sectors improving. suchRetail as trade Household numbers Goods are up,and andClothing some sales sectors are suchout- as Rino Carpinelli performing the national average. Managing Director | South Australia Household Goods and Clothing sales are out-performing the
national average.
SA Retail Economic Drivers
As at AUS SA GDP / SFD Growth Sep-17 2.2 (2.6) 3.6 (2.0)
Population Growth Jun-17 1.6 (1.7) 0.6 (0.9)
Employment Growth Nov-17 3.1 (1.6) 1.3 (0.7) Unemployment Rate Nov-17 5.6 (5.4) 6.3 (6.0) F/T Earnings Growth May-17 2.1 (3.2) 2.5 (3.7) House Price Growth Sep-17 5.1 (5.1) 0.7 (2.9)
Apartment Price Growth Sep-17 3.8 (4.4) 4.2 (2.8)
Retail Trade Growth Dec-17 2.4 (3.6) 4.9 (3.0) - Food Dec-17 2.7 (4.1) 3.2 (4.0)
- Dept Stores Dec-17 1.1 (0.3) -0.4 (-1.2)
- H/H Goods Dec-17 1.3 (2.6) 6.7 (0.3) - Clothing Dec-17 1.5 (3.0) 6.4 (2.9) - Cafes Dec-17 3.8 (5.4) 8.7 (4.6)
Source: ABS / Savills Research. Note: 10yr Average shown in brackets
20
February 2018
Savills Research | Briefing Note - National Retail Q4/2017
Savills Research | Briefing Note - National Retail Q4/2017
Sales Activity – SA Supply Pipeline – SA Sales Activity – SA Supply Pipeline – SA Sales TotalActivity retail –sale SA volumes ($5m+) in 2017 amounted to $230Supply There Pipeline is a limited – SA new shopping centre development million. Sales are below the previous 12 months, however, pipeline in Adelaide, with recent construction activity mostly Total retail sale volumes ($5m+) in the year to December 2017 There is a limited new shopping centre development pipeline Adelaide doesn’t traditionally turn over high volumes due to being led by centre additions and refurbishments. amountedTotal retail saleto $230 volumes million. ($5m+) Sales in 2017are below amounted the previous to $230 12 There is a limited new shopping centre development the tightly held nature of the market. in Adelaide, with recent construction activity mostly being led months,million. Sales however, are below Adelaide the doesn’tprevious traditionally 12 months, turn however, over high pipelineby centrein Adelaide, additions with recentand refurbishments. construction activity mostly Adelaide doesn’t traditionally turn over high volumes due to beingAldi led byleased centre Harris additions Scarfe’s and old refurbishments. department store tenancy volumes due to the tightly held nature of the market. the tightlyA numberheld natu ofre non-metropolitan of the market. deals were reported, mostly Aldiafter leased they relocated Harris Scarfe’s to new formerstore within department the centre store in Julytenancy A numberoff-market, of non-metropolitan including the deals sale were of Charter reported, Hall’s mostly Wharflands off- Aldi leasedafter2017. they TheHarris relocatednew Scarfe’s fitout forto oldAldia new isdepartment due store to be within completed store the tenancy centre in 2018. in July market,A number Shoppingincluding of non-metropolitan Centrethe sale to of a localCharter deals private wereHall’s syndicator reported, Wharflands for mostly $21 Plaza million after 2017.theyWestfield relocatedThe Tea new Tree fitoutto newPlaza for store Shoppi Aldi iswithin ngdue Centre theto becentre is completedcurrently in July being in 2018. and Primewest’s acquisition of Pirie Plaza for $32.05 million. extended to include a new cinema, restaurants and leisure tooff-market, a local private including syndicator the sale for of $21Charter million Hall’s and Wharflands Primewest’s 2017. The new fitout for Aldi is due to be completed in 2018. Harmony Property Syndication group acquired Woolworths Westfieldcomplex, dueTea Tree2018. Plaza Following Shopping the Centrecompletion is currently of 14 being acquisitionShopping Centre of Pirie to Plaza a local for pr $32.05ivate syndicator million. Harmony for $21 millionProperty Westfield Tea Tree Plaza Shopping Centre is currently being Gawler for $32.05 million, also off-market. In the Large extendedspecialty storesto include and aa newfresh cinema,food precinct restaurants in 2016, and the leisure Syndicationand Primewest’s group acquisition acquired of Woolworths Pirie Plaza for Gawler $32.05 for million. $32.05 extended to include a new cinema, restaurants and leisure HarmonyFormat Property segment, Syndication Axiom group Properties acquired sold Woolworths Churchill South complex, complex,balance due of to 2018. upgradesbe complete Following to Westfield in 2018.the completionMarion are unlikelyof 14 to million, also off-market. In the Large Format segment, Axiom Gawler (Kilburn)for $32.05 for $22.35million, million, also off-market.a centre they In started the Large developing specialty commence stores priorand toa 2019.fresh food precinct in 2016, the PropertiesFormat backsegment, sold in 2011Churchill Axiom on landSouthProperties which (Kilburn) alsosold forhouses Churchill $22.35 Bunnings, million,South latera balance Following of upgrades the completion to Westfield of 14 Marion specialty are storesunlikely and to a fresh centre(Kilburn) theysold. for $22.35started In December, million, developing aAxiom cen treback also they inannounced started2011 on developing landan agreement which commence food precinct prior to in2019. 2016, the balance of upgrades to Westfield alsoback houses in for2011 conditional Bunnings, on land sale which later of theirsold.also 50%housesIn December, interest Bunnings, in ChurchillAxiom later also North Marion are unlikely to commence prior to 2019. announcedsold. In ShoppingDecember, an agreement Centre Axiom to Inheritancealsofor conditional announced Capital sale an Asset agreementof theirManagement 50% interestfor conditional forin $42.5Churchill sale million. of North their 50%Shopping interest Centre in Churchill to Inheritance North CapitalShopping Asset Centre Management to Inheritance for $42.5Capital million. Asset Management for $42.5Sales million. Activity by Retail Type
$600m Regional Sub Regional Supply Pipeline by Retail Type SalesSales ActivityActivity ($5m+)by RetailLarge by FormatType Retail TypeCity Centre Supply Pipeline by Retail Type (sq m) $500m $600m Regional FreestandingSub RegionalNeighbourhood 50,000 Regional Sub Regional Neighbourhood Large Format Supply Pipeline by Retail Type Large FormatOther City CentreShops $400m $500m Freestanding Neighbourhood 50,000 40,000 Regional Sub Regional Neighbourhood Large Format Other Shops $300m $400m 40,000 30,000 $200m $300m
$100m 30,000 20,000 $200m
$0m $100m 20,000 10,000
$0m Source: Savills Research 10,000 0 2017 2018 2019 2020 2021 Source: Cordell/Savills Research Source:Source: Savills Savills Research Research (Year to Dec-17) Source:0 Cordell/Savills Research (Year to Dec-17) 2017 2018 2019 2020 2021 Source: Cordell/Savills Research savills.com.au/research 21
Savills Research | Briefing National Retail
Outlook 2018
Nationally a broad cross section of investors have been On a state basis, retail trade growth in New South Wales, competing for available stock in recent years, however, the Victoria, South Australia, Tasmania and the Australian Capital purchaser profile has begun to shift over the last 12 months. Territory is outperforming the national growth rate, while those states previously exposed to the downturn in the resources Investment volumes have surpassed the highs of 2015 and and mining sector, Queensland, Western Australia, and to 2016 and a greater number of Regional centres are trading. some extent the Northern Territory are underperforming. Institutional owners have begun to divest non-core assets, There are green shoots in Western Australia and Queensland, mostly in the Neighbourhood centre space, and to redeploy especially on the labour front, with improvements in capital for either development or enhancement of core assets commodity prices and record export growth driving a positive in their existing portfolios. National Neighbourhood Centre outlook for 2018 and beyond. sales increased markedly during 2017 and this trend could potentially run through 2018. Population growth in Sydney and Melbourne will continue to fuel both investment demand and retail trade performance There has been a change in the type of assets that are through 2018. Employment has been rising in all states but trading recently, with Large Format and Neighbourhood wage growth remains low. This may continue for some time, centres becoming increasingly competitive. Expect to see raising some concerns for discretionary retail centre owners, a continuation of strong demand across retail generally at least in the short-term. but prospective purchasers will face greater competition, particularly as Australia’s exposure to e-commerce retail rises While the most active net sellers through the last three years on the back of Amazon’s entry into the market. Additionally, have been institutional (funds, trusts) and foreign investors, supply-chain and logistics providers may also face greater 2018 may see the private sector trade assets in markets competition and pressure to transform to keep pace with where the peak of the market is approaching. Brisbane, Amazon’s multi-channel strategy. On that note, expect to see Perth and to some extent Adelaide, are potentially nine to further transformation to retail formats across the country 12 months behind in that cycle to the extent that the investor on the back significant capital expenditure, mainly in the profile will be two-tiered nationally. discretionary retail sectors in order for owners to differentiate their stores by offering greater diversification in the tenancy mix and service offerings.
22 February 2018
Key 2017 Transactions by Sector
Recent Sales – Regional
Property Vendor Purchaser Price ($m) / Date / GLA Yield % / Type / $/sq m
Commonwealth (50%) Indooroopilly SC, QLD AMP Capital (1) 795.00 | Nov-17 | 113,116 4.42 | e | 13,835 Superannuation Corp. GPT Wholesale (25%) Highpoint SC, VIC Besen Group 660.00 | Jul-17 | 153,900 4.21 | e | 17,154 Shopping Centre Fund
(49%) Chatswood Chase, NSW (2) Vicinity Centres GIC 562.30 | Nov-17 | 63,715 4.75 | r | 18,011
(50%) Rockingham SC, WA Vicinity Centres AMP Capital Investors 300.00 | Nov-17 | 62,314 6.00 | i | 9,629
(50%) Kawana Shoppingworld, QLD Mirvac Group ISPT 186.00 | Dec-17 | 38,403 5.50 | r | 9,687
Source: Savills Research; i = Initial, e = Equated, r = Reported; (1) On behalf of AMP Capital Shopping Centre Fund (25%) and AMP Capital Diversified Property Fund (25%); (2) Exchange of a 49% stake in Vicinity’s Chatswood Chase Sydney for a 50% stake in GIC’s Queen Victoria Building, The Galeries and The Strand Arcade
Recent Sales – Sub-Regional
Property Vendor Purchaser Price ($m) / Date / GLA Yield % / Type / $/sq m
Salamander Bay Centre, NSW Vicinity Centres Charter Hall 174.50 | May-17 | 23,520 5.83 | e | 7,419
Marketown SC, NSW Cartier Group AMP Capital 163.25 | Jun-17 | 26,011 5.78 | e | 6,276
Rockworth Capital Town Square Redbank Plains, QLD Alceon CapTrans JV 160.00 | Jan-17 | 26,800 6.00 | i | 5,970 Partners
(50%) East Village, NSW Private Developer Mirvac 155.30 | Aug-17 | 33,000 n.a | n.a | 9,393
Wodonga Plaza, VIC Vicinity Centres M/Group 43.50 | Jun-17 | 17,503 n.a | n.a | 2,485
Inheritance Capital (50%) Churchill North SC, SA Axiom Properties 42.50 | Dec-17 | 32,887 n.a | n.a | 2,585 Asset Management Muswellbrook Shire Muswellbrook Marketplace, NSW Private Investor 34.25 | May-17 | 12,838 8.72 | e | 2,668 Council
Pirie Plaza, SA Private Investor Primewest 32.05 | Sep-17 | 11,029 7.53 | e | 2,906
Source: Savills Research; i = Initial, e = Equated, r = Reported;
Recent Sales – City Centre
Property Vendor Purchaser Price ($m) / Date / GLA Yield % / Type / $/sq m
(50%) Queen Victoria Building, (50%) The Galeries, (50%) The Strand Arcade, GIC Vicinity Centres 556.00 | Nov-17 | 39,599 5.00 | r | n.a Sydney NSW (2)
Source: Savills Research; i = Initial, e = Equated, r = Reported; (2) Exchange of a 49% stake in Vicinity’s Chatswood Chase Sydney for a 50% stake in GIC’s Queen Victoria Building, The Galeries and The Strand Arcade.
savills.com.au/research 23 Savills Research | Briefing National Retail
Key 2017 Transactions by Sector (continued)
Recent Sales – Neighbourhood (Top 20 Sales by Value)
Property Vendor Purchaser Price ($m) / Date / GLA Yield % / Type / $/sq m
Pittwater Place, NSW DB Bank QIC 98.00 | Oct-17 | 12,094 5.82 | i | 8,103
Marketplace Warner, QLD Private Investor AMP Capital Investors 78.35 | Oct-17 | 11,477 5.47 | i | 6,827
Bathurst City Centre, NSW Vicinity Centres QIC 71.15 | Oct-17 | 12,558 6.50 | r | 5,666
Chester Square, NSW Private Investor Private Investor 68.50 | Sep-17 | 8,270 3.78 | i | 8,283
Mango Hill Market Place, QLD Private Investor ISPT 61.00 | Nov-17 | 7,862 5.57 | i | 7,759
Albany Creek Square, QLD Charter Hall Fortius 55.88 | Nov-17 | 10,068 6.96 | i | 5,550
Bluewater Square, QLD Alceon Elanor Investors 55.25 | Nov-17 | 10,004 7.65 | i | 5,523
Benowa Village, QLD Coles Property Group Private Investor (China) 49.50 | Oct-17 | 6,318 5.08 | r | 7,835
Arena SC, VIC Parklea Developments Private Investor (China) 48.10 | Apr-17 | 8,144 5.39 | e | 5,906
Worongary Town Centre, QLD AHC SCA Property Group 46.30 | Jun-17 | 7,096 6.00 | r | 6,525
Century City Walk SC, VIC Challenger Group iProsperity Group 45.00 | May-17 | 8,352 6.30 | r | 5,388
Woodcroft Village, NSW Haben Property Group Private Investor 43.85 | Sep-17 | 4,669 5.52 | r | 9,392
Peregian Springs, QLD Private Investor ISPT 41.50 | Aug-17 | 4,772 5.35 | i | 8,697
Centennial Property Entrada SC, NSW Cook Property Group 41.32 | Jul-17 | 5,570 5.70 | r | 7,418 Group Real Estate Broadway Plaza, NSW PPB Advisory 41.20 | Mar-17 | 8,457 8.01 | e | 4,872 Management Group
Highfields Village, QLD Private Investor Charter Hall Retail REIT 41.00 | Jun-17 | 10,312 6.08 | e | 3,976
Illawong Village, NSW Private Investor Private Investor 40.00 | Sep-17 | 6,471 6.30 | r | 6,181
Clifton Village, QLD Arkadia IBA 36.00 | Nov-17 | 7,900 6.50 | i | 4,557
Mudgeeraba Market, QLD Private Investor SCA Property Group 35.80 | May-17 | 6,092 6.10 | i | 5,876
Park Village, QLD Premier Pacific Private Investor 35.20 | Jun-17 | 6,421 6.27 | r | 5,482
Source: Savills Research; i = Initial, e = Equated, r = Reported;
24 February 2018
Key 2017 Transactions by Sector (continued)
Recent Sales – Large Format (Top 20 Sales by Value)
Property Vendor Purchaser Price ($m) / Date / GLA Yield % / Type / $/sq m
Lasalle Investment Aventus Retail Property Home Hub Castle Hill, NSW 336.00 | May-17 | 51,936 5.51 | i | 6,470 Management Fund
IKEA, WA Cebas Pty Ltd GDI Property Group 143.50 | Feb-17 | 26,500 5.80 | r | 5,415
Aventus Retail Property Home HQ Artarmon, NSW Fortius 140.10 | Dec-17 | 22,196 6.50 | i | 6,311 Fund
Brickworks Centre, Southport, QLD Private Investor AMP Capital Investors 137.54 | Aug-17 | 15,844 5.09 | e | 8,681
Lasalle Investment Aventus Retail Property Home Hub Marsden Park, NSW 100.00 | May-17 | 19,833 6.00 | i | 5,042 Management Fund
Bunnings Carringbah, NSW # Wesfarmers CBRE Global Investors 67.39 | Nov-17 | 14,645 5.00 | r | 4,601
Australiasian Property Joondalup Gate, WA Private Syndicate 57.80 | Jan-17 | 24,533 7.87 | i | 2,356 Investments (APiL)
Bunnings Bonnyrigg, NSW # Wesfarmers CBRE Global Investors 56.07 | Nov-17 | 12,185 5.00 | r | 4,601
West Gosford Hometown, NSW Harrington Property Primewest 45.00 | Dec-17 | 15,886 7.25 | e | 2,833
Hunter Supa Centre, NSW Sentinel Property Group Primewest 42.25 | Jan-17 | 19,995 7.42 | e | 2,113
Aventus Retail Property Tweed Hub, NSW MPG 40.10 | Dec-17 | 9,763 7.42 | r | 4,107 Fund Australiasian Property 5 Clayton St, Midland, WA Primewest 30.75 | Jul-17 | 9,727 7.30 | i | 3,161 Investments (APiL)
Good Guys Carringbah, NSW Private Investor Private Investor 29.45 | Sep-17 | 5,569 6.26 | i | 5,288
Bunnings Windsor Gardens, SA # Wesfarmers CBRE Global Investors 27.20 | Nov-17 | 13,657 5.00 | r | 1,992
Bunnings Mernda, VIC RCL Group Private Investor 25.00 | Dec-17 | 15,000 5.10 | r | 1,667
Kilburn South, SA Axiom Properties Private Investor 22.35 | Sep-17 | 7,404 7.21 | e | 3,019
Aventus Retail Property Shepparton Home, VIC Syndicate 20.00 | Dec-17 | 13,661 7.42 | r | 1,464 Fund 12-18 David Witton Dr, Noarlunga Private Investor Private Investor 17.50 | Feb-17 | 7,454 8.16 | i | 2,348 Centre, SA
3 Montpelier Rd, Bowen Hills, QLD Private Investor Unified Property Group 16.20 | Jul-17 | 3,393 6.37 | e | 4,775
Woolcock St Super Stores, Currajong, Private Developer Properties & Pathways 16.00 | Jul-17 | 2,331 7.35 | e | 6,864 QLD
Source: Savills Research; i = Initial, e = Equated, r = Reported; # Sold as part of a portfolio of four Bunnings Warehouse retail properties across Australia and New Zealand
savills.com.au/research 25 Savills Research | Briefing National Retail February 2018
Savills National Contacts - Retail
New South Wales Research Valuations Retail Investments Retail Services Katy Dean Chris Paul Steven Lerche Leighton Hunziker +61 (0) 2 8215 6011 +61 (0) 2 8215 8850 +61 (0) 2 8215 8929 +61 (0) 2 8215 8838 [email protected] [email protected] [email protected] [email protected]. Research Asset Management Project Management Peter Sutherland Ben Nastasi Gavin Boswarva +61 (0) 2 8215 8980 +61 (0) 2 8215 8893 +61 (0) 2 8215 8935 [email protected] [email protected] [email protected] Queensland Research Valuations Retail Investments Peter Sutherland Lawrence Devine Peter Tyson +61 (0) 2 8215 8980 +61 (0) 7 3002 8822 +61 (0) 7 3002 8807 [email protected] [email protected] [email protected] Asset Management Project Management Ben Nastasi Andrew Hogg +61 (0) 2 8215 8893 +61 (0) 7 3018 6738 [email protected] [email protected] South Australia Research Valuations Retail Investments Katy Dean Heath Dowling Rino Carpinelli +61 (0) 2 8215 6011 +61 (0) 8 8237 5039 +61 (0) 8 8237 5005 [email protected] [email protected] [email protected] Asset Management Project Management Jeffrey Klaebe Steve Christodoulou +61 (0) 8 8237 5018 +61 (0) 8 8237 5004 [email protected] [email protected] Victoria Research Valuations Retail Investments Monica Mondkar Joe Phegan Pat De Maria +61 (0) 3 8686 8034 +61 (0) 3 8686 8064 +61 (0) 3 8686 8080 [email protected] [email protected] [email protected] Asset Management Project Management Howard Chapman David Hayden +61 (0) 3 8686 8870 +61 (0) 3 9445 6806 [email protected] [email protected] Western Australia Research Valuations Retail Services Katy Dean Mark Foster-Key Chris Ireland +61 (0) 2 8215 6011 +61 (0) 8 9488 4145 +61 (0) 8 9488 4179 [email protected] [email protected] [email protected] Asset Management Project Management Jason Ridge Graham Nash +61 (0) 8 9488 4118 +61 (0) 8 6271 0306 [email protected] [email protected]
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