Parkstone Portfolio

Parkstone Retail No 1 Pty Ltd
Hinkler Central Shopping Centre, Bundaberg QLD
DJI 0008

In March 2024, Parkstone completed the acquisition of Hinkler Central for $107.0M. Situated in the heart of Bundaberg’s Central Business District, the property spans 4.85 hectares and stands as the premier Retail Centre in the area. Anchored by Woolworths, Coles, and Kmart, it boasts 56 supporting specialty shops and kiosks, encompassing a Gross Lettable Area (GLA) of approximately 20,800 sqm.

Hinkler Central has undergone several phases of redevelopment and expansion since its original construction in the late 1970s. A significant redevelopment took place in 2005, integrating the Woolworths & Coles/Kmart properties into a single fully enclosed Centre. Further refurbishments were carried out in 2013. Additionally, a development approval for a 1,100 sqm expansion was granted in 2019, which remains valid.
 
 
 
 
 
 
 

 

 

 

total tools

Parkstone Syndicate No 1 Pty Ltd
Total Tools – Mount Barker, SA -  SOLD - IRR 37.40%

Mount Barker a rapidly growing regional rural area in the Adelaide Hills approx. 30 minutes from the Adelaide CBD with a population nearing 40,000. In August 2019, a newly built premises leased by Australia’s leading trade and industrial tools retailer, Total Tools, was acquired for $3.35M.

In late 2021 the decision was made to sell and capitalise on current demand for assets of this nature and the growth which had occurred in and around property. Parkstone appointed agent and sold the property at auction for $5.28M reflecting a yield of 4.50% with settlement occurring in January 2022. The sale returning a money multiple over 2x and 37.40%. IRR to investors.

 

 

 

 

 

 


 

retail propertyParkstone Syndicate No 36 Pty Ltd
Riverdale Shopping Centre - Dubbo, NSW


Dubbo is located in the Orana Region of NSW, 350 kilometres north west of the Sydney CBD and is the major community, civic and administrative, and retail destination for residents of the Dubbo LGA and surrounding region in Central Western NSW. The city is strategically located at the junction of the major highways through the region and has an expanding population of close to 36,000.

In March 2020, a regionally based neighbourhood shopping centre located in the suburb of Riverdale was acquired for $20.165M. Anchored by a Woolworths Supermarket and Reading Cinema, the centre is also supported by 16 specialty retail shops, a single ATM and car parking for 299 vehicles.

Whilst the specialty shops have a variety of different tenancy timeframes, Woolworths is the main tenant with a current lease expiring in June 2024 with 3 * 5 year options to June 2039 and Reading Cinema committed to June 2028 with a further option to extend to 2035.

The current annual cash yield is currently 8%.

Strategy

Parkstone will seek to increase the trading performance of the asset by:

  • Improving the appearance of the centre, incorporating façade,pylon and amenity upgrades.
  • Increasing the presence of the major retailer, Woolworths, through a reconfiguration and potential expansion of the Woolworths.
  • Management can further improve WALE trough retention and releasing.
  • Improve the GLA of the centre through expansions of existing tenancies.
  • Reducing long term operational costs through addition of renewable energy technologies. 



Orange StreetviewParkstone No 35 Pty Ltd
Woolworths - Orange, NSW


Orange is a regional city in the Central West region of NSW, 55 kilometres north-west of Bathurst and 250 kilometres north-west of Sydney CBD and acts as a key service centre and administration hub for the NSW Central West region. The city incorporates higher order retail facilities as well as significant education, health, commercial and administrative facilities and is easily accessible by major highways. This accessibility, the continued development of Orange’s viticulture industry and the emergence of the city as a gastronomical destination has driven tourism and now delivers over 3 million visitors annually. The current population of approx. 37,000 is growing rapidly.

In December 2020, a freestanding Woolworths supermarket substantially upgraded in 2018 with prime frontage and access to over 300 car-parks within the heart of the Orange CBD retail precinct was acquired for $19.5M.

The lease is current to 2034 with 2 * 5 year options, and is returning an initial cash yield of just over 7.1%.

In April 2021 a revaluation of the Orange property was undertaken by a major independent valuation firm revealing a current market value of $21.9M, an increase of $2.4M or 12.3% from the initial December 2020 acquisition price.

Strategy

Parkstone will seek to increase the trading performance of the asset by:

  • Improving the appearance of the centre, incorporating façade upgrades.
  • Investigating expansion opportunities of the holding through development of adjoining land to further drive sales.

 


Parkstone No 2 Pty Ltd
Drakes – Semaphore, SAParkstone drakes

This supermarket anchored centre is located within the long established coastal suburb of Semaphore 16 kilometres north west of the Adelaide city centre.

The property is located within 150 metres of the Esplanade on Semaphore Road which forms the key commercial corridor of the area fulfilling many of the shopping, retail and dining needs of the local and broader community given the proximity to the coast.

The property is anchored by the largest independent grocery retailer in Australia, Drakes Supermarkets. Originating in South Australia Drakes Supermarkets now have over 5000 staff and 50 stores throughout South Australia and Queensland.

Drakes Supermarkets have occupied of the Semaphore store since 2000 and represent the only convenience based supermarket in the suburb with dedicated onsite car parking. The supermarket is further supported by four specialty tenancies over two levels on a landholding of 3,936 sqm with excellent frontage and exposure to Semaphore Road.

The property was acquired in September 2021 for $12.5M with a forecast annual cash yield of almost 6.9% over the investment term.

Strategy

Parkstone will seek to increase the trading performance of the asset by:

  • Improving the appearance and lettable area of the property through façade and balcony upgrades to improve specialty income.
  • Provide an opportunity for capital growth over the medium to long term.
  • Investigating future mixed use in relation to development opportunities on the site for the long term.

 


Parkstone No 35 Pty Ltd
846 South Road, Edwardstown SA - SOLD -21.7% above purchase price

The property is located only 6.5 kilometres southwest of the Adelaide CBD along the main North South Corridor.846-south-road.jpg

Anchored by the AMA Group an ASX listed leader in the Australian and New Zealand auto body repair industry the property comprises approximately 3,436 sqm of total building area and situated on a regular shaped 7,718 sqm site. The building provides a functional integration of office, warehouse/ workshop accommodation with hardstand area. The office accommodation has been upgraded to the majority with a total area of approximately 772 m2 of space. The office area is split into two separate components and provides a reception area, boardroom, offices and amenities to the main portion together with a further office area accessed via a separate entry.

The property was acquired for $5.75M in September 2021 by the Investors of the Parkstone No 35 Unit Trust.

With lease renewal secured at $365,000 net from November 2021 for a period of 5 years with a further 5 year option for the tenant to extend to November 2031.

The current annual cash yield is currently over 8% for the Parkstone No 35 Unit Trust.

Strategy

Parkstone will seek to improve the asset by:

  • Securing tenants on commercial terms for an extended period.
  • Reducing long term operational costs through addition of renewable energy technologies.

 A revaluation of the Edwardstown property was undertaken in March 2022 by a major independent valuation firm revealing a current market value of $6.7M, an increase of $950,000 or 16.5% from the initial September 2021 acquisition price.


Parkstone No 3 Pty Ltd
Virginia Shopping Centre, Virginia SA

The Virginia Shopping Centre is centrally located within the Virginia township approximately 30 minutes north of the Adelaide CBD via the recently completed northern expressway and lies within the City of Playford Council’s PlayfordGrowth Area Structure Plan'. More specifically, the property is located on the western side of Old Port Wakefield Road and bound by Sheedy Road to the South, Sophia Street to the West and Park & Odgers Roads to the North.virginia shopping centre1

The centre is well positioned to cater to the existing catchment and proposed future developments. The ‘Playford Growth Area Structure Plan’ proposes the development of up to 580 hectares of land to the North, West and South of the existing Virginia township.

In February 2022, the centre was acquired for $22.0M. Anchored by a Woolworths Supermarket and BWS tenancies totalling 3,257 sqm(approx.) and account for 67% of the centres NLA. The Centre is further supported by an additional 1,582 sqm (approx.) of specialty retail currently disposed as 16 shops with Centre currently 98% occupied.
The built improvements are located on a landholding comprising multiple titles with four street frontages and a total land area of approximately 1.65 ha.

Strategy

Parkstone will seek to increase the trading performance of the asset by:

  • Partnering with major retailer, Woolworths, to deliver a significantly improved supermarket offer to align with an extensive centre refurbishment.
  • Undertaking centre works to include upgrades to the external façade, internal malls and amenity upgrades and addition of shade sails to parking areas.
  • Management can further improve WALE trough retention and releasing opportunities.
  • Improve the GLA of the centre through development of surplus landholdings.
  • Reducing long term operational costs through addition of renewable energy technologies. 

 

 


Parkstone No 34 Pty Ltd
Woolworths – Wagga Wagga, NSW

Wagga Wagga is a regional city in the Riverina region of NSW located midway between Australia’s two largest capital cities of Sydney (450 kilometers north-east) and Melbourne (460 kilometers south). With a population of over 65,000 people, Wagga Wagga is the largest NSW inland city.woolworths waggawagga

The city features a growing population base and acts as a key retail and service centre for the New South Wales Riverina and much of the South-West Slopes regions.

The Woolworths & BWS anchored freestanding property is sited on a landholding of approximately 9,058 sqm with excellent street frontage and on grade parking with a strong trading history and .  Woolworths are planning to undertake an extensive refurbishment of the store in 2022.   
 
The property was acquired for $20.0M in February 2022  targeting a pre tax distribution of over 5.0%.
 
 Strategy
 
 Trading performance of the asset to improve by:

  • Through significant upgrades and improvements to the Woolworths trading floor and external façade upgrades.

 

Subdivision
Parkstone No 4 Pty Ltd
Lot 77 & No. 20 Meyer Road,  Lonsdale SA

The $7.25M Lonsdale acquisition involved two separate landholdings with a total land area of approximately 4.9 ha with short term holding income and development upside.

Lonsdale is a core southern industrial precinct located 25 kilometres from the Adelaide CBD and provide excellent access to nearby arterial roads including Dyson Road and the main north-south carrier of the Southern Expressway. The individual properties comprise the following: -

Lot 77 Meyer Road, Lonsdale SA  : A circa 10,470sqm vacant land holding to the eastern side of Meyer Road. Parkstone entered into a Heads of Agreement (HOA) with a long established South Australian company, to construct a 5,000sqm showroom / warehouse facility.

25 Meyer Road, Lonsdale SA  : A circa 38,400sqm landholding, currently accommodating the Royal Society of Prevention of Cruelty to Animals (RSPCA) for a period of 18 months with holding income.  Following the vacation of RSPCA to their new facility Parkstone plan to redevelop the side into industrial estate comprising 9 industrial allotments, ranging in size from 2,500m2 up to 7,000m2 approximately.

Strategy

To deliver holding income and capital return over the short term with the potential for increased returns in an event the Unit Trust undertake further developments in the completed industrial park. 

 

Warehouse Plan