Large Format Retail
The Royal Oak LFR Unit Trust 1
RealisedA greenfield large-format-retail development delivering the Treendale Home & Lifestyle Centre in Australind, Western Australia — taken from acquisition through development and stabilisation to a $53 million divestment to ASX-listed Region Group, returning a realised 45.87% ROE to investors.
Fund overview
The Royal Oak LFR Unit Trust 1 funded the development of the Treendale Home & Lifestyle Centre: 11,816 square metres of gross lettable area across four buildings on a 32,502 square metre island site with 310 car bays, six access points, shared parking with the neighbouring Woolworths and a position directly opposite Bunnings.
The centre was leased to a line-up of national large-format retailers including Revo Fitness, Petstock, SportsPower, The Furniture Gallery, Red Dot Home, Furniture Bazaar and Hip Pocket Workwear & Safety, then divested to ASX-listed Region Group for $53 million in a sale negotiated by Colliers and Stonebridge Property Group.
Strategy & thesis
Greenfield development captures the deepest layer of value in the capital stack — but only for managers who control design, delivery and leasing risk directly. Treendale was originated, developed, stabilised and sold inside the Royal Oak platform in approximately two years.
The divestment expresses the model: develop and stabilise a premium asset, crystallise the outcome at the right point in the cycle, and recycle capital into the next opportunity — rather than holding in perpetuity.
The asset in pictures
The asset
- Asset
- Treendale Home & Lifestyle Centre, Australind WA
- Gross lettable area
- 11,816 sqm across four buildings
- Site
- 32,502 sqm island site, 310 car bays, six access points
- Tenants
- Revo Fitness, Petstock, SportsPower, The Furniture Gallery, Red Dot Home, Furniture Bazaar, Hip Pocket Workwear & Safety
- Divestment
- Sold to ASX-listed Region Group for $53 million
Term & structure
- Structure
- Closed-ended wholesale unit trust, offered by Information Memorandum
- Term
- Completed in approximately two years
- Equity raised
- $13.4 million
- Minimum investment
- $250,000 AUD
- Eligibility
- Wholesale, sophisticated and professional investors only
Returns
Large Format Retail
Realised45.87%
Investor ROE over the life of the investment
Large Format Retail
Realised18.04% p.a.
Investor IRR
Royal Oak Asset Management Pty Ltd (CAR No. 1297058) and Alex Gismondi (AR No. 1297050) are authorised representatives of Wholesale Securities Pty Ltd (ABN 89 601 790 470, AFSL No. 466877).