Parkstone swoops on two more Woolworths backed malls
Adelaide fund manager Parkstone has spent over $40 million for two more Woolworths backed retail investments.
In its home town, the group has acquired a small mall in Virginia, a north west suburb growth corridor 34 kilometres north west of the CBD.
The Virginia Shopping Centre at 18 Old Port Wakefield Road was targeted because of the region’s present and projected catchment, the buyer said.
A major renovation and repositioning, possibly with an extension, is planned, likely to be concluded by the end of next year, it added.
The purchase comes five months since local private investor Tony Scaffidi outlaid $46m for the Gawler Green Shopping Centre, about 20km north east of Virginia.
At Victor Harbour, 80km south of the South Australian capital, Coles recently sold a major supermarket asset to Adelaide businessman Andrew Gwinnet for $33.5m with a leaseback.
Dubbo deal brings portfolio value to nine figures
Meanwhile in a second deal, at Dubbo, in regional New South Wales, Parkstone is purchasing the Riverdale Shopping Centre.
Woolworths anchors this asset at 49-65 Macquarie Street; following settlement, the retailer will refurbish its space.
Reading Cinema also occupies part of the complex.
Savills’ Rino Carpinelli brokered the Virginia deal while colleagues Steven Lerche and Rick Silberman negotiated the Wagga Wagga sale.
The respective purchase prices reflect sub five per cent yields.
Following settlement, the three year old Parkstone’s property portfolio exceed $100m.
Adelaide, NSW a target: Parkstone
Parkstone managing director Tim Wilkins said the group concentrates on regional NSW and metropolitan Adelaide product.
“The purchases were an excellent strategic fit for the fund,” the executive added of the latest acquisitions.
“Parkstone already has two properties in regional NSW – the Riverdale Shopping Centre in Dubbo anchored by Woolworths and a standalone Woolworths supermarket in Orange,” according to the executive.
“Last November, [it] settled on a shopping centre anchored by a Drakes supermarket with future development potential in the Adelaide beachside suburb of Semaphore.
“The new acquisitions are a neat fit with our growth strategy of acquiring predominantly food-based retail properties which meet the needs of non-discretionary spenders and have the potential for income growth through physical improvement and innovative leasing strategies.
“They also have a natural synergy with our existing portfolio in terms of their regional co-location, the nature of their anchor tenancies and the shared expectations of their consumer catchments along with the ability to unlock further value via the development of underutilised land”.
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