Nick Scali Limited – which last week told investors to expect a 50-60 per cent rise in profits for the first half of this financial year thanks to “extremely buoyant” sales in June and July – has paid $6.6 million for a Keswick showroom it intends to rebuild as its flagship city store.
The 3615 square metre holding, 19 Anzac Highway, has for some 25 years accommodated family businesses Australian Classic Timber Furniture and Kimberly James Furniture.
CBRE Metropolitan Investments’ Mitch Curnow said “an uplift in zoning along the street has underpinned the area’s appeal as a highly desirable investment location, allowing for a mix of quality retail tenants and future high-density projects subject to the relevant planning approvals”.
Colleague Harry Einarson added the Nick Scali Limited sale and redevelopment plan “would help cement Anzac Hwy, Keswick, as one of Adelaide’s premium retail destinations”.
“The recent success of the nearby Third Avenue residential project in addition to plans for further residential projects on Anzac Hwy and the push to redevelop the Keswick Army Barracks is attracting quality national brands like Nick Scali to this location”.
The property contains a 3000 sqm warehouse with two street frontages (story continues below).
Keswick is about 2.4 kilometres south west of the CBD.
Anzac Hwy connects the city to beach-side Glenelg.
Nick Scali national property development manager Gary Sullivan, said the rebuild should take place in coming months.
The retailer is expected to relocate from a prominent outlet at the western (James Congdon Drive facing) edge of a homemaker centre at Mile End South – the suburb north of Keswick.