An inner-Adelaide commercial investment on a site big enough to be on the radar of major developers from Australia’s east-coast, and offshore, has been listed with high-$20 million price hopes.
At the busy intersection of Magill, Fullarton and Payneham roads, with North Terrace, and also with frontage to Chapel Street, the land is zoned Urban Corridor.
It could make way for a master-planned mixed-use complex with multiple buildings, components which could be strata titled and sold down pre or post construction.
The property currently contains 8323 square metres of lettable area, fully-leased to nine tenants, a mix of office and industrial businesses.
The net annual rental return is $1.17 million.
Transaction manager and Jones Real Estate director Paul Jones expects interest in 2-20 Magill Road, Norwood, to come from investors and developers.
Local selling agent Peter Fried of RLC Property said builders may be able to construct towers of up to 10-storeys given current planning guidelines.
The property is about 500 metres from the former Caroma factory – which recently sold to a consortium comprising Catcorp and Buildtec for a rumoured $2200 per square metre of land.
The Caroma site, like 2-2- Magill Road, was marketed for its urban-renewal potential.
Shortly after buying the Caroma site at 76 Magill Road, Norwood, Catcorp and Buildtec proposed a $225 million village with several buildings containing apartments and offices.
“The 30-year plan for greater Adelaide seeks a new urban form that includes more intensive forms of urban development along main road corridors,” Mr Fried said.
“Greater Adelaide will be able to create a more compact urban form for the remainder of the city and it’s region and reduce further urban sprawl”.
It is expected that major retailers will show an interest in 2-20 Magill Road.
In 2017, Germany-based hypermarket Kaufland spent $25 million on the ex-Le Cornu furniture showroom in Forestville, about 12 kilometres south-west of the Adelaide CBD.
Kaufland plans to owner-occupy the 3.6 hectare Forestville parcel after rebuilding it as a 20,000 sqm store.
Coles, IKEA, Harvey Norman, Woolworths, and fast-food chains like McDonalds and KFC, own large property portfolios in Australia.