Narooma Plaza.

Client: Private family

Objectives:

There were two main objectives with respect to this centre.

1. Secure a second anchor tenant for the centre, reconfigure the existing tenancy mix, reduce the vacancy rate and improve the centres WALE to enable the client to obtain funding to complete a major redevelopment of the centre.
2. Prepare, implement and execute the project leasing marketing package for the new specialty tenancies, assist in the project management of the redevelopment program, reconfigure the existing tenancy mix and manage the existing tenants within the centre during this 18 month process.

Strategy:

Narooma Plaza is the retail heart of Narooma and the surrounding suburbs. As part of the redevelopment, the client envisaged that the centre would provide greater shopping options and improved, modern amenities to local residents and the general community. To achieve this outcome for the client we completed the following;

• Analysing the demographics of residents in the Primary Trade Area;
• Prepare and implement a marketing campaign to target businesses that would meet the desired outcome for the centre;
• Ensure that rental and outgoing rates for the centre were within market levels and sustainable both for the operators and the client’s feasibility for the project;
• Provide input into tenancy design and services to appeal to a broad range of potential tenants

Team: Dan Greenlees

Critical Path:

• Prepare and implement tenancy mix plan
• Use our extensive database of contacts and professional relationships we approached major national tenants with the aim of securing a second anchor tenant for the centre;
• Secured ALDI as the centres second anchor tenant
• Secured finance for the redevelopment program through an improved valuation outcome
• Incorporate required services for each tenancy into construction program
• Prepare and implement marketing program
• Secured lease agreements for all specialty tenancies as per the agreed tenancy mix and re-configured the existing tenancies in the centre to non-retail and non-discretionary tenants such as medical, banking and government service providers
• Planned, implemented and oversaw the centres grand opening ceremonies

Outcomes:

The outcomes achieved for the client initial objective included;

• Securing ALDI as a second anchor tenant for the centre
• Re-configuring the tenancy mix towards non-discretionary service-based businesses
• Reducing vacancy rate from 5.5% to 0%
• Increasing specialty rents by 32% p/sqm
• Increasing the centres Weighted Average Lease Expiry (WALE) from 0.7 to 4.3.

These achieved outcomes lead to a 30% uplift in the centres valuation, enabling the client to secure finance on competitive terms enabling them to proceed with the redevelopment of the centre.

Once finance had been secured and the construction tender process completed, we were able to assist with the client second set of objectives, achieving the following outcomes;

• Performed all marketing and leasing activities for the new specialty tenancy locations within the redevelopment
• Secured quality tenants for all available tenancies at rates that exceeded the clients required rental rates for each tenancy
• Assist in the project management of the redevelopment program
• Manage the existing tenants within the centre during this 18 month process
• Manage the centre, the project leasing and the redevelopment program through various external challenges including the 2019 / 2020 bushfires and the COVID-19 pandemic
• Opened the new ALDI Supermarket and all new specialty stores on the scheduled opening day
• Completed the redevelopment program with the centre achieving a Weighted Average Lease Expiry (WALE) of 9.0