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Jasper releases its first Marketplace Offer - Warrawong Plaza

Jasper releases its first Marketplace Offer - Warrawong Plaza

At Jasper, we are committed to providing our investors with access to a diverse and unique selection of institutional-grade real estate investment opportunities with attractive risk-adjusted returns.

Alongside offers that we source and manage ourselves known as Jasper Originals, we also provide access to Marketplace Offers. Marketplace Offers are carefully curated investment opportunities sourced and managed by one of Jasper’s credible partners but accessible through the Jasper platform.

This means that Jasper's investors can build a diverse commercial real estate portfolio across both equity and debt offerings, from multiple fund managers, within multiple strategies and geographies. And they can do it all from the comfort of your own home, using a secure online platform.

It's the future of real estate investing. Helping smart investors invest smarter.

The Warrawong Plaza Fund (Warrawong or the Fund) is our first Marketplace Offer in partnership with Elanor Investors Group (Elanor), and offered in New Zealand exclusively through Jasper.

Elanor is an ASX listed fund manager established in 2009, with over $2.0 billion AUD of assets across Australia and New Zealand. Elanor is a market leader in successfully repositioning retail real estate into strongly performing, non-discretionary retail assets to deliver strong investor returns.

Please note the Warrawong Plaza Fund is only available to wholesale investors.

The Opportunity

The property is Warrawong Plaza, Wollongong, New South Wales, Australia. The double supermarket, double discount department store anchored shopping centre has been acquired via an off-market transaction for $136.35 million AUD. This price reflects a fully leased yield of 7.75% p.a. and is well below its $253 million AUD replacement cost.

Warrawong Plaza is situated on a prominent 7-hectare corner site with exposure to 45,000+ vehicles travelling daily along Wollongong’s main arterial roads. The Centre has a long-standing position within the Wollongong retail market, providing unparalleled amenity to its well-established trade area - a precinct that continues to experience positive demographic change and retail growth.

The Strategy

The Fund’s value-add repositioning strategy seeks to transform the centre into a strongly performing triple supermarket, single discount department store asset. This will be supported by an active tenant remixing programme to introduce further essential service offerings to this growing area. Importantly, key milestones for the strategy will be executed and de-risked by Elanor prior to settlement of the asset.

Aspects of the repositioning strategy have been de-risked; with terms agreed for the introduction of a new 3,800m2 Woolworths supermarket in early 2023 and a 2,000m2 of e-commerce / fulfilment facilities, for a combined Woolworths / Big W ‘Direct to Boot’ and state of the art on-line delivery distribution facility.

On completion of the repositioning strategy, Warrawong Plaza’s investment value is forecast to be significantly enhanced following improvement in the centre’s occupancy, trading performance and tenancy profile (forecast):

  • Increasing income from supermarket retailers from 14% to 28%; discount department store income will reduce to 10% (from 20%)
  • Extending WALE from 4.7 years to 6.4 years (by area)
  • Growing Major’s Annual Turnover (MAT) by $30 million to $215 million (AUD ex GST)
  • Increasing occupancy from 91% to 98%

Investment Highlights

  • Forecast Cash Return: 7.0% p.a. (Year 1); 8.5% p.a. (5-year average)*
  • Forecast Total Return (IRR): 12.2% p.a.** at completion of the Repositioning Strategy
  • Strategic value-add investment, transforming Warrawong Plaza to a non-discretionary focused triple supermarket, single discount department store town centre. Repositioning strategy to significantly improve centre’s trading performance, occupancy and tenancy profile.
  • The repositioning strategy has been de-risked, with terms agreed for the introduction of a new 3,800m2 Woolworths supermarket in early 2023 and a 2,000m2 of e-commerce / fulfilment facilities, for a combined Woolworths / Big W ‘Direct to Boot’ and state of the art on-line delivery distribution facility.
  • Prominent 7 hectare site in a gateway location that benefits from high visibility to King St (Wollongong’s main arterial road) and Northcliffe Dr (45,000+ cars daily)
  • Strong trade area demographics. NSW’s third largest city, Wollongong, has a diverse $12.2 billion economy underpinned by strongly growing employment sectors.

If you have any questions about the offer email Mat Harvie [email protected] or call him on +64 275 497 229.

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Disclaimer:

* The forecast average cash return is before taxes and after fees, and based on a 5 year period from November 11, 2021. See the Information Memorandum for underlying assumptions & further detail.

** The forecast total return or IRR is before taxes and after fees, and based on a 5 year period from November 11, 2021. See the Information Memorandum for underlying assumptions & further detail.

*** Per recent Mansfield Property Advisory estimate, land tax valuation, leasing fees, incentives & commissions.

See the Information Memorandum for underlying assumptions & further detail.No forecast, objective or target, is certain. Forecasts assume the successful execution of the positioning strategy. Actual performance and volatility will depend on many factors, including overall financial market performance and the risks discussed in this Information Memorandum. Please read the Information Memorandum carefully.This investment opportunity is only available to certain qualifying investors who do not require disclosure under Part 3 of the Financial Markets Conduct Act 2013 (FMC Act). The Limited Partnership will not be a registered scheme under that Act and this email is not a product disclosure statement. It is not intended to be advice and is not intended to contain all the information you may require in relation to an investment in the Limited Partnership. You can also seek advice from a financial advice provider to help you to make an investment decision.

Mark Hurley - Jasper

Mark Hurley

Co-CEO & Executive Director

Posted on 7 Oct 2021

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Important Disclosures

Liquidity Not Guaranteed: Jasper offers secondary market functionality on its platform, however, there is no guarantee that you will be able to exit your investments on the secondary market or at what price an exit (if any) will be achieved.

Performance Not Guaranteed: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this website will be profitable, or equal any corresponding indicated historical performance level(s).

Risk of Loss: Investing in commercial real estate involves a high degree of risk and may result in partial or total loss of your investment. We encourage our investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish.

No Personal Advice: Jasper does not provide personal advice or recommendations. The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. It is important for you to consider these matters and to seek appropriate legal, tax, and other professional advice before making a decision.

Wholesale Offers: Jasper currently only offers financial products to wholesale (or other qualifying) investors. Jasper does not currently hold a Managed Investment Scheme (MIS) license.

FSPR No. 692011. Information on this page is based on information available to us as of the date of posting and we do not represent that it is accurate, complete or up to date.