Shopping Centre

DEXUS
Retail
Profile
A Diverse Retail Manager
and Developer
NEW SOUTH WALES
7 Retail Centres
$2.2 billion
55% of Retail Portfolio
NORTH QUEENSLAND
2 Retail Centres
$0.4 billion
10% of Retail Portfolio
SOUTH AUSTRALIA
1 Retail Centre
$0.2 billion
6% of Retail Portfolio
VICTORIA
3 Retail Centres
$0.8 billion
19% of Retail Portfolio
SOUTH QUEENSLAND
2 Retail Centres
$0.4 billion
10% of Retail Portfolio
DEXUS RETAIL PORTFOLIO
Shopping Centres
ADELAIDE
Westfield West Lakes
BRISBANE
Westfield North Lakes
Beenleigh Marketplace
SYDNEY
Plumpton Marketplace
Westfield Miranda
Westfield Hurstville
Westfield Mt Druitt
TOWNSVILLE
CAIRNS
Smithfield Shopping Centre Willows Shopping Centre
(includes Sunland Plaza)
MELBOURNE
TWEED HEADS
Westfield Plenty Valley
Tweed City Shopping Centre
Westfield Knox City
WAGGA WAGGA
SHEPPARTON
Sturt Mall
Shepparton Marketplace
CENTRAL COAST
Deepwater Plaza, Woy Woy
City Retail
QV, 180–222 Lonsdale
Street, Melbourne
Southgate, Melbourne
Galleria, 385 Bourke Street,
Melbourne
Australia Square, Sydney
Cover: Artist impression, Gateway
city retail redevelopment
Gateway, Sydney
Grosvenor Place, Sydney
5 Martin Place, Sydney
39 Martin Place, Sydney
201 Elizabeth Street, Sydney
All data as at 31 December 2015 unless
otherwise stated.
DEXUS manages
a diverse portfolio
of shopping centres
around Australia
on behalf of its third
party clients.
DEXUS utilises
its retail
capabilities to
enhance portfolio
performance
and satisfy the
investment
objectives of its
third party clients
CAIRNS
TOWNSVILLE
BRISBANE
TWEED
HEADS
CENTRAL
COAST
ADELAIDE
SHEPPARTON
SYDNEY
WAGGA WAGGA
MELBOURNE
DEXUS managed shopping centres
Westfield/DEXUS Wholesale Property
Fund co-owned shopping centres
City Retail
RETAIL
CENTRES
15
RETAIL
PROFESSIONALS
106
RETAIL FUNDS
UNDER MANAGEMENT
$4.1bn
A Diverse Retail Manager
Retail is a key driver of performance for DEXUS’s third party clients, comprising
38% of third party funds under management.
DEXUS has a team more than
100 retail professionals to
manage its diverse third party
retail portfolio which includes
eight sub-regional shopping
centres, and investments in
seven Westfield shopping centres.
DEXUS’s integrated model
provides third party clients
with access to retail expertise
in investment management,
property management,
development management
and transactional expertise.
DEXUS also leverages its retail
capabilities to create a vibrant
retail experience for its office
customers across its city retail
precincts at the base of its office
buildings, enhancing tenant
attraction and retention.
QV, 180–222 Lonsdale Street, Melbourne
To be globally recognised as
Australia’s leading real estate company
Vision
Strategy
To deliver
superior risk-adjusted returns for
investors from high quality Australian real estate
primarily comprising CBD office buildings
Strategic
Objectives
LEADERSHIP
IN OFFICE
CORE
CAPABILITIES
THIRD PARTY
PARTNERSHIPS
CAPITAL &
RISK MANAGEMENT
Being the leading
owner and manager
of Australian
office property
Having the best people,
strongest tenant
relationships and most
efficient systems
Being the wholesale
partner of choice in
Australian office,
industrial and retail
property
Actively managing
capital and risk in a
prudent and disciplined
manner
DEXUS’s Integrated Platform of Expertise
DEXUS utilises its retail capabilities to manage a diverse portfolio
on behalf of its third party clients, enhancing portfolio performance
and satisfying their investment objectives.
Artist impression, Willows Shopping Centre, Townsville, retail redevelopment
DEXUS has an experienced, stable and fully integrated
management team of over 360 professionals who are
focused on delivering results.
Delivering on its clients’ investment objectives, DEXUS
has undertaken approximately $410 million of retail
property transactions since June 2014, including the
acquisition of three sub-regional shopping centres
with the opportunity to enhance returns through active
management.
DEXUS managed shopping centres are located in
areas with strong demographics and the potential to
develop in line with population growth.
At sub-regional shopping centres, DEXUS’s on site
management works in collaboration with retail tenants
to create centres that deliver the right mix to their
trade areas. DEXUS develops deep connections with
local communities and partners with retail tenants on
marketing campaigns to ensure retail strategies are
targeted to meet customer expectations.
DEXUS undertakes developments across its shopping
centre and city retail portfolio. Across DEXUS’s
$2.1 billion third party development pipeline six retail
projects are underway, as well as DEXUS Wholesale
Property Fund’s (DWPF) Gateway retail development
in Sydney where 70% of income has been secured
ahead of completion later in 2016.
DEXUS Retail – Looking Ahead
DEXUS is moving quickly to re-mix shopping centres in response to changing
consumer expectations and increased demand for a shopping ‘experience’.
Artist impression: new city retail at Grosvenor Place, 225 George Street, Sydney
Retail development pipeline
City retail
DEXUS’s $1.3 billion third party retail development pipeline
will deliver approximately 151,000 square metres of space
to the portfolios of its third party clients. This will
enhance portfolio quality and performance.
In addition to its pipeline of shopping centre
developments, DEXUS is actively repositioning its city
retail precincts to enhance customer satisfaction and
improve tenant retention in its CBD office properties.
DEXUS undertakes masterplanning to reposition
its centres to meet the needs of their growing
communities. A major retail redevelopment of
Willows Shopping Centre, Townsville, commenced
in 2015 and will reinforce the centre’s status as
the leading convenience-based sub-regional shopping
centre in the region.
Major retail redevelopments at Grosvenor Place1
and Gateway2 are the first of a number of projects that
will change the face of Circular Quay and surrounding
areas in Sydney. These projects are also set to benefit
from the completion of the Sydney CBD Light Rail.
1. DEXUS (37.5%), DEXUS Office Partner (12.5%).
2. Gateway, Sydney is owned by DWPF and managed by DEXUS.
DEXUS’s retail leasing and development teams,
throughout development design and delivery, are
ensuring that an exceptional retail mix and amenity
is provided for its customers.
DEXUS Retail Management Delivers Results
DEXUS has utilised its retail expertise to achieve retail centre growth
and satisfy the investment objectives of its third party clients.
Transactional and asset management
capability
Active management of jointly held centres
Sub-regional shopping centre acquisitions
§§ DEXUS actively collaborates and engages with
Westfield to ensure that:
-- asset strategies meet the needs of customers
and the trade area
-- redevelopments and repositioning strategies
maximise returns for DWPF unitholders
§§ Achieved commercial outcomes including:
-- $41.8 million Westfield West Lakes development,
completed in October 2013 and delivered a project
IRR of 12.7%
-- $480 million2 repositioning development at
Westfield Miranda opening in November 2015,
with the project fully committed at opening
-- $105 million2 redevelopment of Westfield Hurstville
completed, providing an extensive ambience
upgrade and a new rooftop dining precinct opening
in November 2015
-- $80 million2 stage 1 expansion of Westfield North
Lakes completed, with the fresh food market and
restaurant precinct opening in November 2015
§§ Acquired three sub-regional shopping centres for
a combined total of $230.4 million1 in July and
December 2014, meeting DWPF’s Investment Plan
objectives of investing in high quality centres with
repositioning potential
§§ Implemented a tenancy remix to improve customer
experience and strengthen the centres’ point of
difference to competing centres in the main trade area
§§ Implemented a range of marketing campaigns to drive
retailer sales and traffic
§§ Worked with key stakeholders in the local community to
ensure the centres are functioning as a community hub
§§ Achieved strong sales turnover at each of the centres
since acquisition, with specialties sales exceeding
industry productivity benchmarks
§§ Undertaken masterplanning to enhance the quality
of the centres and drive long term returns, delivering
DWPF Investment Plan objectives
Activation of city retail precincts
Sydney and Melbourne redevelopments
§§ Adopted a precinct planning approach to enhance
city retail spaces in line with developments at their
broader precincts
§§ 5 Martin Place, Sydney – Secured leases3 with
leading retailers COS, RIMOWA, Kit and Ace,
Reuben Hills, and Roll’d
§§ Gateway, Sydney – Commenced a major
redevelopment to double the retail space to more
than 4,500sqm, and secured 70% of income ahead
of completion
§§ Grosvenor Place, Sydney – Commenced a retail
plaza redevelopment4 for an indoor/outdoor food
emporium, with the project fully pre-committed
ahead of completion
§§ Galleria, 385 Bourke Street, Melbourne – Achieved
approval for a major retail repositioning redevelopment
and secured a lease with Kathmandu for a flagship store
Westfield portfolio
Retail masterplanning
Willows Shopping Centre
§§ Completed a $74 million development in October 2009
increasing total area to 38,000sqm and achieving
a yield on cost of 7.2%
§§ Secured approval in 2015 for a $90 million
redevelopment to meet forecast population growth
of 2.4% over the next 10 years including:
-- a new-format Woolworths, basement and rooftop
parking, two new mini-majors, 35 new specialty
stores, a fresh food precinct and expanded parking
§§ Commenced development in April 2015, with
completion expected in late 2017
-- secured new leases with Cotton On and Nextra
1. Plus acquisition costs.
2. Redevelopment cost at 100% (owned 50/50 by DWPF
and Scentre Group).
3. In partnership with co-owner Cbus Property.
4. With co-owners, Mirvac, CSC, DEXUS Office Partner.
Property expertise.
Institutional rigour.
Entrepreneurial spirit.
DEXUS Head Office
Level 25, Australia Square
264-278 George Street
Sydney NSW 2000
PO Box R1822
Royal Exchange NSW 1225
Phone: + 61 2 9017 1100
Fax: + 61 2 9017 1101
Email: [email protected]
Website: www.dexus.com
DEXUS IR App and LinkedIn
This information is issued by DEXUS
Funds Management Limited in its
capacity as responsible entity of
DEXUS Property Group. It is not
an offer of units or invitation to
apply for units and is not financial
product advice.