This article is from the Australian Property Journal archive
ADELAIDE billionaire Con Makris has furthered his retail portfolio selldown program to $181 million with the divestment of Hallett Cove Shopping Centre.
South Australian developer Antunes Group snared Hallett Cove Shopping Centre in the affluent southern coastal suburb for $71 million.
It is the third sale by Makris Group following its $110 million sale of City Cross shopping centre in Rundle Mall and North Adelaide Village earlier in the year, with the tough retail environment forcing Makris to accept a price little more than half of initial hopes of $200 million.
The pair had been listed for sale by Makris in August last year, shortly after selling Newton Village in the city’s north eastern suburbs for $35 million.
Makris lodged plans for an overhaul of the Marina Mirage at Main Beach on the Gold Coast, which it has owned for eight years. It also owns the Oracle Boulevard at Broadbeach.
CBRE’s Simon Rooney has negotiated the three Adelaide deals on behalf of Makris Group, which is South Australia’s largest privately-owned retail property group.
Hallett Cove is a triple supermarket, convenience-based sub-regional shopping centre with gross lettable area of 19,913 sqm, on a dominant nearly-5.3 hectares corner site. The centre is leased to national retailers Woolworths, Aldi and Drakes supermarkets and discount department store Big W.
Major, national and chain tenants comprise 78% of the total GLA with a weighted average lease expiry of 7.7 years by area. Woolworths, Big W and Aldi all have long-term leases until at least 2029.
Non-discretionary represents 97% of the centre’s moving annual turnover and 83% of total gross rental income.
“Investors are now actively pursuing quality retail opportunities to capitalise on attractive returns relative to other asset classes, with a clear focus on defensive, non-discretionary retail assets,” Rooney said.
“In the case of Hallett Cove, the incoming purchaser was attracted to the strong underlying investment fundamentals, with the asset being the dominant sub-regional shopping centre in a well-established and densely populated trade area, providing a strong triple supermarket and fresh food offering.”
Rooney noted that the asset was well-positioned to benefit from the projected growth in retail expenditure in the trade area, which is forecast to grow by nearly $800 million to $2.0 billion by 2036.
A Coles supermarket-anchored centre in South Australia’s Victor Harbour has just been offered to the market. The Fleurieu Peninsula asset also comprises Liqourland, a Reject Shop and a F45 gym. A Bunnings store adjacent to the site sold in 2019 to Melbourn3e-based investor on a 5.1% yield.
