A most successful turnaround story
The new look Canberra Outlet Centre is now the Australian capital’s premier one-stop retail destination for outlet shopping, thanks to the expertise of dedicated retail property service provider RetPro.
The dynamic team led by founder and managing director Graham Terry, transformed Canberra’s only outlet centre from an underperforming asset to a leading retail hub.
Once known as DFO Canberra, the centre at the edge of the eastern industrial suburb of Fyshwick, now offers more than 100 specialty stores plus a homewares and furniture precinct.
Former owner Goldman Sachs engaged RetPro in January 2015 to revitalise the centre, and within a two-year period, 170 deals were negotiated with incredible results, culminating in the $135 million sale of the outlet Centre in February 2017.
The project was a roaring success and one of the best turnaround stories in the entire industry, according to Mr Terry.
“The ex-DFO was unbelievably distressed, it was basically almost 80 per cent vacant,” he said.
“Now it’s an upmarket fashion outlet centre of top-class retailers, which is performing exceptionally well.”
RetPro’s hard work and dedication has achieved phenomenal outcomes for the centre, including an increase in annual sales by almost 40 per cent.
Net operating income profit more than doubled, while foot traffic trippled!
The number of tenancies has risen significantly, with 45 vacancies reduced to three, and the tenure of existing tenants has increased with average leases extended from two months to five years.
Doxens of tenants on lease holdover deals were converted to permanent lease agreements, while debt which was in the millions was reduced by over 95 per cent.
Using its expertise in shopping centre management and retail leasing, RetPro built strong relationships with stakeholders and increased confidence in the future direction of the centre.
The experienced team offered sound advice and hands-on management, without compromise, and developed plans to achieve the most beneficial outcome for the centre.
RetPro put together a good business plan and leasing strategy, approacing the project aggressively to win the big retailers, including TK Maxx, Lindt, Nike, Oroton, Seed and Harris Scarfe.
The centre is now also home to Bonds, Asics, Puma, M.J. Bale and Cue, as well as homemaker retailers including Adairs, Freedom, Provincial, JB Hi-Fi Home, and Snooze.
Its Premium Mall boasts top international fashion retailers Ralph Lauren, Tommy Hilfiger, Calvin Klein, Oroton, Ugg and Swarovski.
Canberra Outlet continues to improve and expand, with plans in the pipeline to develop the Homemaker Centre and upgrade the food court.