Royal Oak Capital sells Treendale Home & Lifestyle Centre in $53m institutional transaction
Following a competitive campaign that drew multiple offers from major buyers, Treendale Home & Lifestyle Centre in Australind (Western Australia) has changed hands in a $53 million transaction, with institutional investor Region Group acquiring the asset from Royal Oak Capital.
Alex Gismondi, CEO & Founder of Royal Oak Capital, said the divestment marks a major milestone.
“The sale of Treendale Home & Lifestyle Centre is a defining moment for Royal Oak Capital. We are proud to have delivered exceptional investor returns through a ground-up development while creating a vibrant, essential hub that has created jobs, strengthened local infrastructure and delivered a hybrid tenancy mix for the community,” he said.
“We congratulate Region Group on the acquisition and wish them every success as custodian of this outstanding centre.”
The newly developed centre has quickly established itself as a key Large Format and hybrid retail destination servicing the growing Australind and Treendale catchments. At the time of sale, the asset reported a passing yield of 4.88%, a fully leased yield of 6.09%, a WALE of 8.0 years, and occupancy of 18 out of 20 tenancies, reflecting the depth of tenant demand and income security profile.
Market interest was driven by institutional appetite for newly constructed retail assets with long WALE income profiles, strong tenant covenants, flexible zoning, and minimal capital expenditure requirements.
Mr Gismondi said that for Royal Oak Capital, the project’s appeal stemmed from its rare combination of a genuine greenfield development in a high-growth regional corridor and market fundamentals that are difficult to replicate.
“Australind and the broader Treendale precinct continue to experience sustained population growth, supported by limited competing supply, strong household formation and the presence of an established town centre anchored by national retailers,” he said.
“The centre was designed to deliver a modern, Large Format Retail that complements the existing shopping precinct, rather than compete with it.
The asset also incorporates flexible design features to support future reconfiguration and service expansion, supporting long-term relevance as the surrounding corridor continues to grow.
“From an investment perspective, the project provided the opportunity to create institutional-grade product through active development and leasing, rather than acquiring stabilised assets at compressed yields. That value-creation strategy aligns closely with our approach to sourcing and executing opportunities that are not widely accessible to most investors,” Mr Gismondi said.
The timing of the divestment was also deliberate, aligned with both business plan delivery and prevailing capital market conditions.
Treendale Home & Lifestyle Centre was delivered through a fully integrated model, with Royal Oak Capital overseeing acquisition, approvals, leasing, construction and exit strategy through its broader advisory, debt and risk management ecosystem, which includes the Transact Group.
Leasing of the showroom tenancies was managed internally as part of Royal Oak Capital’s integrated development and investment management approach and executed progressively throughout construction with a focus on securing national Large Format Retailers that complemented the adjacent town centre offer.
The sale was handled by Philip Gartland and Justin Dowers of Stonebridge Property Group together with Richard Cash and James Wilson of Colliers.
