Greenpool Capital acquires Dianella Plaza from VCX for $76.25 million

Active Perth-based funds manager Greenpool Capital has purchased Dianella Plaza in Perth’s northern suburbs for $76.25 million. 

This brings total retail investment activity in WA for 2023 to a total of $848.5 million, ranking WA the third highest in terms of retail transaction activity within Australia, behind Victoria at $1.3 billion and Queensland at $1.2 billion. The recent $465 million sale of Midland Gate by VRP to Fawkner Property and PAG in October was the largest retail transaction in WA and Australia in 2023.

Dianella Plaza is the fourth retail acquisition for the expanding Greenpool Capital, amassing $468 million in acquisitions since 2021, its most recent purchase being Forest Lakes Shopping Centre WA for $81.5 million in July 2022, North Adelaide Village SA for $50 million and Runaway Bay Shopping Centre QLD at $260 million, all sold and negotiated by CBRE. 

Located in the inner-Perth suburb of Dianella, 8km north of the CBD, the 17,138sqm, food, service and convenience-based neighbourhood centre is anchored by Woolworths and Coles, The Reject Shop, 54 specialties and kiosks, three ATMs and six pad sites. 

CBRE’s Simon Rooney managed the off-market sale campaign on behalf of Vicinity Centres together with James Douglas.

“Despite recent interest rate increases, the sub $100 million retail centre market has continued to increase in buyer depth, demand and overall transaction volumes in 2023, dominated by private capital and attracted by compelling returns, adjusted values and robust underlying trading performance,” Mr Rooney said.

“The overall outlook for retail property is positive both from an owner and investor standpoint. Rents and values have gone through a recalibration coming out of Covid, with minimal recent or forecast supply and corresponding increased demand, an expanding buyer pool and increased liquidity, allowing owners to streamline and reposition portfolios and investors securing access to historically tightly held high-quality assets”.

The transaction was struck at a $4.25 million premium to VCX’s June 2023 book value, reflecting a 6.75% core cap, passing yield of 6.65% and a fully leased yield of 7.38%.

Dianella Plaza is 95% occupied and generates an impressive and growing annual turnover of $123.4 million. Specialty productivity at $7,632sqm is in line with industry benchmarks coupled with the Plaza’s highly sustainable specialty GOC of 12.4%.

Situated on the corner of Grand Promenade and Alexander Drive, the plaza offers easy access from a local and regional context via proximity to key major arterial roads Grand Promenade Road, Beaufort Street, Morley Drive, Alexander Drive and Tonkin Highway.

The centre is situated on a strategic land-rich 79,250sqm metropolitan site including 17,735sqm of adjoining separately titled land, providing future development and expansion opportunities subject to the relevant planning approvals and providing car parking for 934 vehicles.