FRP Capital Brickworks Information Memorandum July 2023 - Flipbook - Page 15
Brickworks Marketplace
Information Memorandum
14
Leasing and
Rental Strategy
It is estimated that an effective Leasing and Rental Strategy has the
potential to contribute an additional $550,000 worth of gross income
to the Asset. This has not been factored into existing returns.
PROACTIVE & AGGRESSIVE
LEASING STRATEGY
FRP’s in-house leasing team is focused and diligent.
They have formed strong relationships with tenants and
the retail leasing market to ensure the right tenant mix
and provide income security for the Asset.
—
96% leased
—
$580,000 income vacant
—
Uplift investor return by 50 basis points
POSITIVE RENTAL INCREASE
TENANT REMIXING
PERCENTAGE RENT
Many of the existing tenants have a lower than
market rent, enabling positive rental uplift upon
expiry via renegotiation or replacing the tenant.
There is additional opportunity at the centre for
tenant remixing to stay up-to-date with retail trends
and customer preferences.
An annual 2% increase for both Woolworths and
Dan Murphy’s will have them paying percentage
rent by year 4 and 6 respectively.
—
Attract high profile popular brands
to increase foot traffic
—
Woolworths current turnover $45M percentage
rent at $48M
—
Rework tenancy mix to suit the catchment
area demographics
—
Dan Murphy’s current turnover $19.5M
percentage rent at $20.5M
—
Replace poor-trading fashion tenants
Current
Rent/sqm
Market
Rent*
Uplift
Zamel’s
$495
$950
92%
Jeans West
$580
$800
38%
Lee Massage
& Acupuncture
$650
$800
23%
Noni B
$432
$700
62%
*PCA benchmarks for sub regional shopping centres
