This article is from the Australian Property Journal archive
A LARGE format retail complex in Adelaide’s north east suite to medium-term redevelopment has sold for $10.25 million.
The Golden Grove property has a building area of 3,102 sqm and is occupied by Cheap as Chips and Lollipops Play Café for a net yearly income of over $550,000 and a weighted average lease expiry of more than five years.
The sale price represented a yield of 5.37%.
Located next to the CIP-owned The Grove shopping centre and amongst other retailers such as First Choice Liquor, Aldi, OTR and KFC, 7-11 Helicon Drive was offloaded by a private South Australian investor who had held the property for over 15 years.
“The acquisition of the site is an astute strategic purchase that allows for a range of discretionary and non-discretionary redevelopment options in the future including large format retail, entertainment or grocery retailers who could benefit from expanding their offering into the catchment area,” said JLL’s Ben Parkinson, who managed the sale.
The site has exposure to more than 30,000 cars passing the site daily.
Convenience-based retail assets in South Australia to sell in the past year include Coles Victor Harbour for $33.5 million, Gawler Green Shopping Centre to Tony Scaffidi for $46 million, Fairview Green Shopping Centre and Dernancourt Village to SCA Property Group, and more recently The Brickworks at Torrensville to fund manager FRP Capital for $85 million.
Parkinson said the demand for retail property demonstrated the liquidity in the market and robust demand that remains for major retail assets in a market that is traditionally limited in its investment grade retail stock offering.
