Malaga Markets  
 

Property description Enclosed, single level markets offering a wide variety of stalls, a food court and bar area.
Property location Beach Road Cnr Bonner Drive Malaga , WA.
Syndicate/Trust commencement date December 2004
Property purchase price $8.75 million
Current valuation $14.5 million (June 2015)
IRR since inception 16.5%
Trust term Original term of  6 years, now extended  until December 2017
Number of tenants 70
Retail trading area 2,329 sq m
Site area 1.8208 hectares (18,208 sq metres)
Car bays 375

Background
The property is prominently located having frontage to Beach Road and is in close proximity to the corner of busy Alexander Drive.

The Malaga Markets is a unique asset which has a strong focus centred on a vibrant foodhall and cheap fresh fruit and vegetables. The Malaga Markets has a good level of custom traffic each week that experience the more casual, informal retailing environment than a traditional shopping centre. Visitors browse amongst variety stalls which generally target cost conscious consumers. The Malaga Markets provides a unique family shopping experience.

The Malaga Markets is a modern, purpose built market complex with a functional layout which commenced trading in December 1994. The markets trade from 9 am to 6 pm on Fridays, Saturdays, Sundays and Public Holidays. The foodhall stays open until 9 pm on these days.

There is strong demand for tenancy space within the Malaga Markets which provides for full occupancy at most times.

Improvements
The Malaga Markets were purpose designed and built for the operation of the unique market concept, which commenced trading in December 1994.
The property comprises a centrally located foodhall and fresh produce area with two wings of market stalls. The total net lettable area of the stalls is approximately 2,329 square metres and comprises the following:

Foodhall 11 tenants
approx 320.5 m2
General Stalls 5 tenants
approx 106.5 m2
Central Stalls 11 tenants
approx 684.5 m2
East Wing Stalls 26 tenants
approx 606.5 m2
West Wing Stalls 17 tenants
approx 611.0 m2
Total 70 tenants
approx 2,329.0 m2

The central foodhall and fresh produce areas are well presented and provide foodhall seating for some 300 people and a central stage for live entertainment.

The foodhall area contains 11 tenancies including a coffee shop, Italian, Chinese, Thai and Japanese food stalls, ice cream, seafood, carvery, satays, kebabs and a licensed bar. Most of the food tenancies have an area of approximately 30 square metres. The foodhall has a total tenancy area of 320.5 square metres (excluding seating).

Several general stalls are situated adjacent to the fresh produce area and include a florist, gift shop, hairdresser and coffee beans retailer.

The central market stalls are situated in two wings either side of the central foodhall and fresh produce area. The west wing has a total tenancy area of approximately 611 square metres and the east wing is approximately 606 square metres plus a cleaners store. The stalls vary in size from around 12 to 30 square metres although some of the tenancies incorporate numerous stalls.

Some 375 on site car bays surround the development and are designed to encourage the use of all seven entry points to the markets.

Lease details
All tenants pay rent on a gross basis, with the property owner responsible for the payment of all outgoings. There are a total of 70 tenant leases and some 2,329 m2 of tenancy areas.