Moelis Australia Asset Management has sold a homemaker centre in Adelaide’s north.
The Hollywood Plaza Large Format Retail complex is trading to a local private investor for $12.95 million.
On a 3.7 hectare site at 155 Winzor Street, Salisbury Downs, the asset includes two buildings, with 8080 sqm of lettable area – fully leased, to six tenants.
Based on the annual rental return ($980,000), the investment is selling on a passing yield of 7.6 per cent.
The shopping centre occupies just 22 per cent of the holding – so the property offers medium-term development prospects.
It is opposite the Hollywood Plaza Shopping Centre, which includes a Coles, Woolworths, Target and 64 specialty stores.
Salisbury Downs is about 20 kilometres north of the city.
Moelis Australia head of Real Estate Asset Management, Chris Monaghan, said “the transaction of the property with its solid investment characteristics at an attractive yield speaks to the strength of the South Australian economy and retail property market”.
The sale comes 11 months after we reported, exclusively, that Moelis acquired a portfolio of hotels from the Zagame family for c$270 million.
“Enquiry was quite strong for an asset which offered a number of investment attributes including the centre’s full occupancy, the integrated nature of the six tenancies and the associated drawing power, along with the space available for future expansion,” Mr Dowers said.
The holding could be considered for a mixed-use redevelopment, Mr Wizel added.
“Investors were therefore offered an asset with a strong existing income stream and the knowledge that the land component provided potentially significant additional income prospects down the track,” the agent said.
“There is no doubt that the future development upside was important in appealing to a wider group of potential purchasers”.
The agents said that South Australia is experiencing a period of growth with the ship building program, and $5 billion investment in the largest teaching hospital in the Southern Hemisphere.
“That is the sort of economic news that attracts investment in property especially quality retail assets such as the Hollywood Plaza Large Format Retail Centre,” Mr Dowers said.
The City of Salisbury’s population is forecast to increase from 144,440 in 2019, to 153,520 by 2036, according to population researcher .id.