This article is from the Australian Property Journal archive
A SYNDICATE of local investors have paid $34.45 million for the Centro St Agnes shopping centre in Adelaide in a deal negotiated by CB Richard Ellis.
CBRE metropolitan investments director Alistair Laycock said the sale campaign had generated fierce competition, with 70 buyer enquiries and 10 Expressions of Interest lodged.
He added the Adelaide shopping centre market is extremely tightly held and there have been limited opportunities to purchase a high quality neighbourhood centre such as St Agnes in recent years.
“The campaign had also highlighted the re-emergence of institutional buyers who had been noticeably absent from the market during most of 2010.
“Buyers are back and hungry for retail investment opportunities. Given the increased competition for retail assets, particularly sub-regional shopping centres and quality neighbourhood centres, we anticipate a tightening of yields throughout 2011,” he added.
The strongly performing neighbourhood centre has been syndicated by Zachary Kalamboyas and Kevin Chapley of Australian Retail Property Consultants Pty Ltd.
“We are very pleased and looking forward to improving and expanding the centre in the future,” Kalamboyas said. “We have already secured the last two vacant shops and the centre is now fully let,”
The strong buyer competition resulted in the centre transacting on passing yield of 8.3%.
Located 18km north east of the Adelaide CBD, the centre has a gross lettable area of 10,211 sqm and is anchored by a Coles supermarket, as well as Go-Lo, Fernwood Fitness, 27 specialty shops, one kiosk, 3 ATM’s and a stand alone Caltex service station.
The centre has a passing net income of circa $2.938 million per annum and offers potential for future expansion.
Australian Property Journal
