Makris Group, founded by veteran developer and investor Con Makris, has sold two prominent Adelaide retail assets.
In the biggest deal, Rundle Mall’s City Cross Centre with adjoining small office, 32 Grenfell Street, is trading for $60 million to Parramatta based Revelop.
The price reflects a 6.25 per cent passing yield.
The two storey mall contains 10,512 square metres of lettable area.
Australia Post, Harvey Norman and Rebel Sport are the anchor occupiers.
There are also 56 specialties and a food court – the city’s first for international cuisine, according to Makris.
The City Cross deal comes a year after the vendor sold the same purchaser Newtown Village Shopping Centre in north east Adelaide, for $35m.
Elsewhere in the city, Revelop holds the Gawler Park Homemaker Centre.
In owns a regional South Australian retail asset too, Renmark Square, picked up from Charter Hall Retail REIT for c$25m in 2018.
CBRE director Simon Rooney, who marketed City Cross with James Douglas, said it offered multiple mixed-use development outcomes.
“This future flexibility was a major drawcard for Revelop as was the centre’s strategic Rundle Mall location, which attracts 24 pedestrian visitors annually”.
The 6779 sqm parcel spreads over seven allotments.
“Retail centres are increasingly shifting toward mixed-use developments to drive foot traffic and increase trade,” the agent added.
“The City Cross site affords the flexibility to undertake separate mixed-use developments on individual sites or a combination,” according to the executive.
Given the zoning, student accommodation and residential could be considered (story continues below).
The shopping centre’s worker population catchment is 117,600.
The trade area pool is worth $15.1b, rising to c$27.7b in 2036, the agents said.
Greenpool, Qualitas, buy North Adelaide Village
Meanwhile, Makris Group is selling the North Adelaide Village for $50m.
The buyer, Perth based Greenpool Capital, is backed by Melbourne financier and investment manager, Qualitas.
Their deal reflects a 6.75pc yield. The same agents were involved.
In one of the city’s most affluent areas, the property’s primary trade area household income level is 61.9pc over benchmark, Mr Rooney said.
The precinct’s population is also expected to grow at twice the pace of the metropolitan average – to c41,300 by 2036.
North Adelaide Village is near Adelaide Oval and Riverbank Entertainment Precinct which is undergoing a $535m renewal that will also expand Adelaide Convention Centre.
“The centre benefits from a diverse tenancy mix and a focus on convenience, lifestyle, service and fresh food,” according to Mr Rooney.
“It is anchored by a strong performing Romeo’s Foodland on a long-term lease until 2033 with a further 25 year option, alongside a Goodlife Gym, 34 specialty tenancies and four office[s]”.
On a corner site, it also offers development upside; the zoning allows for something six floors.
“The…centre was well positioned to benefit from projected growth in retail spending in the main trade areas which was forecast to increase from $530.5m to $1.07b by 2036, representing robust average annual growth of 4.2pc,” Mr Rooney added.
“Neighbourhood convenience/non-discretionary anchored retail assets such as North Adelaide Village provide income certainty and security for incoming buyers, with non-discretionary retail representing 86pc of the centre’s moving annual turnover and 79pc of the total gross income,” he said.