Plaza Arcade

Plaza Arcade is located in a prominent position next to David Jones and opposite Myer between the Hay and Murray Street Malls in the Perth CBD.

The Hay and Murray Street Malls are Perth’s largest retail precincts. Plaza Arcade is situated on two levels consisting of over 40 convenience based stores including fashion, accessories, giftware and homewares. With a consistent flow of traffic, the major target market of the arcade is tourists and CBD office workers.

This prime CBD retail property was purchased by clients of Lease Equity in August 2003. Lease Equity acquired this property on behalf of our client after a substantial analysis of its prospective redevelopment and rental increase potential.

Plaza Arcade completed a major refurbishment in 2006 which strengthened its position as the premier retail arcade in the Perth CBD, taking full advantage of traffic flow and achieving substantial increases in rental income via improved tenancy mix.

The tenancy mix changed from predominantly local tenants to over 60% national tenants.

The result of the refurbishment was a 100% leasing of all retail premises and an increase in the average rentals from $1,700 per square metre to $2,250 per square metre and an overall growth in value of the asset of over 30% at the time. Furthermore, the mall end tenancies set new benchmarks for rentals for the time of over $4,000 per square metre (2006).

In March 2013, Lease Equity successfully negotiated the sale of Plaza Arcade to Starhill Global Real Estate Investment Trust, a listed company on the Singapore Stock Exchange, for $48 million. The sale represented an initial yield of 7.7%.

In August 2019, Starhill Global Real Estate Investment Trust, engaged Lease Equity as Exclusive Leasing Agents and Property Managers for Plaza Arcade and David Jones. The Lease Equity team is thrilled to be reappointed on one of Perth CBD’s most iconic and well known properties, with the goal of crafting an optimal mix of tenant to maximise the asset value.