Armada Funds Management, Fund Hollywood Plaza Trust
Armada Hollywood Plaza Trust

Fund Overview 

The Armada Hollywood Plaza Trust was established in March 2012 by Armada Funds Management with the objective of providing reliable levels of high income with inflation linked capital appreciation. The trust owns a 50% interest in the Hollywood Plaza shopping centre with the remaining 50% interest owned by the Armada Hollywood Plaza Institutional Trust which has one institutional investor.

The equity raising was $20,700,000 targeted at sophisticated wholesale investors with a minimum investment of $100,000.

The Fund was launched with an initial forecast distribution yield of 10.0% and NAV of $0.96 against a $1.00 offer unit price. 

The Property 

Hollywood Plaza Shopping Centre is a prominent sub regional shopping centre and bulky goods centre located approximately 2.5km west of Salisbury Town Centre and 18km north of the Adelaide CBD. The trust acquired a 50% interest in the property which settled on the 28th June 2012.

The shopping centre has a total GLA of approximately 22,797 sqm and is anchored by a full line Target DDS and Coles and Woolworths supermarkets. In addition, there are 3 mini majors, being Go-Lo, Priceline and Fernwood Womens’ Health Club, 66 specialty tenancies, 6 kiosks, 9 ATMs, and a Woolworths Plus Petrol.

The Shopping Centre has an excellent representation of national brands and operators including Priceline Pharmacy, Australia Post, Flight Centre, Woolworths Liquor, Commonwealth Bank, Terry White Chemists, Suzanne Grae, Homeart, JeansWest, Specsavers, Michael Hill Jewellers, Strandbags and Smokemart. It also has a very strong food offer including McDonalds, KFC, Subway, Wendys, Pizza Hut, Michel’s Patisserie and Domino’s Pizza.

Originally constructed in 1979, the Shopping Centre has been extended and extensively refurbished in 1990 and 1995. Even with this expansion the Shopping Centre still has an excellent ratio of on-site carparking to GLA of approximately 6.6 bays per 100sqm of GLA. The 1,509 at-grade carparks for the Shopping Centre are accessed via three street frontages and provide highly convenient carparking around the entirety of the Shopping Centre, which ensures each of the main mall entry points are well patronised.

Key Fund Information
Fund Type Wholesale direct property fund
Strategy: Provide reliable levels of high income with inflation linked capital growth.
Inception Date: March 2012
Term: 7-9 years
Status: Closed to new investors
Fund Size: $47 million
Minimum Investment: $100,000
Distributions: Quarterly
Liquidity: Armada will seek to sell the property in 7-9 years or list on the ASX.


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