This article is from the Australian Property Journal archive
ADELAIDE property magnate Con Makris has put the City Cross shopping centre and 32 Grenfell St, one of Adelaide CBD’s largest and most strategic future redevelopment opportunities.
JLL’s Simon Rooney and Jamie Guerra have been exclusively appointed by the Makris Group to sell the super site.
Located strategically in Rundle Mall, City Cross comprises a combined 10,524 sqm of retail and commercial floor space, set on a landmark site of 6,779 sqm.
Rooney said developers will be attracted to City Cross due to its absolute prime location, its substantial holding income and the ability to unlock significant future value by creating a major mixed-use development subject to Development Assessment Commission (DAC) approval.
“Development opportunities are an attractive proposition for investors, presenting the opportunity to generate higher returns than that for existing assets which may not meet their return hurdles.
“Undertaking major redevelopment will also allow developers to create investment product in a market where opportunities to acquire existing assets are becoming more limited and where competition remains strong,” Rooney said.
Subject to DAC approval, the development could comprise the existing retail, a 22,490 sqm commercial office tower, 316 residential apartments and a 56 bed student accommodation tower.
Importantly, City Cross is a thriving mixed use CBD shopping and office complex, comprising Harvey Norman, A-Mart Sports, 2 mini majors, 55 specialties and kiosks and office tenancies with a significant holding income of approximately $6,448,000.
City Cross draws from a significant and diverse total trade area population of 939,810 residents, a worker population of 71,000 persons, a student market of 27,000 and a bustling tourism market of over 7 million visitors pa (source: MacroPlanDimasi, February 2016).
Rooney said retail investment activity in South Australia reached a record high in 2015 at $708 million.
The two major CBD transactions both transacted by JLL, that of the Myer Centre Adelaide ($288 million) sold to Singaporean REIT Starhill and the mixed-use Rundle Place and 80 Grenfell St ($400 million) sold to US investment powerhouse Blackstone, both located on Rundle Mall.
“The Adelaide CBD retail market continues to perform strongly after being significantly revitalised by the development of Rundle Place and 80 Grenfell St, the refurbishment of the Myer Centre Adelaide in 2013, the recent refurbishment of Adelaide Central Plaza in 2014 and the major upgrade to Rundle Mall,” Rooney concluded.
Australian Property Journal
