This article is from the Australian Property Journal archive
MOELIS Australia Asset Management has listed the fully-leased Hollywood Plaza large format retail centre in Adelaide’s northern suburbs for sale, hoping to fetch around $14 million for the expansive site.
CBRE’s Justin Dowers, Mark Wizel, Michael Fenton and Kevin Tong are marketing the 8,080 sqm centre, which returns an annual net income of $980,000 from six tenants that include Cheap as Chips, Supercheap Auto, Salvation Army and Anytime Fitness, with a weighted average lease expiry of 5.8 years.
Hollywood Plaza is on a 37,000 sqm site that also presents value-add or expansion opportunities, including mixed-use development, due to its low 22% site coverage.
Located at Salisbury Downs, around 20 kilometres north of Adelaide’s CBD, the centre is opposite the Hollywood Plaza shopping centre, which has Woolworths, Coles and Target and 64 specialty stores.
Dowers said large format retail centres presented a unique value proposition in the commercial property market, demonstrating strong performance, particularly when located in growth areas and where complemented by neighbouring major shopping centres.
“Large format retail centres are generally located on large land parcels with rents more closely aligned to industrial than traditional retail rents, making the land and building rates, per square metre, exceptionally compelling,”
Fenton said the centre’s full occupancy underscored demand from retailers for exposure to this type of asset, which have attracted larger volumes of customers than standalone retailing.
He said South Australia’s economy was currently experiencing a period of growth, buoyed by significant investment in key sectors such as the $86 billion ship building program and $5 billion investment to-date in the largest teaching hospital in the Southern Hemisphere.
“Retail assets in South Australia are historically tightly held, and therefore opportunities to purchase quality assets, such as the Hollywood Plaza large format retail centre, have been scarce.
“We expect that given the positive economic position that South Australia can now lay claim to, the abolition of stamp duty on commercial transactions and the overall strong attributes of the asset, the centre will generate a high level of interest from local, interstate and international investors,” Fenton said.
Expressions of interest for Hollywood Plaza close 22nd August.
