Petrol tsar spends c$135m on Adelaide mall

Melbourne investor Nick Andrianakos is paying over $135 million for a half stake of the Colonnades – the country’s fourth biggest shopping centre measured by land area.

The interest in the Noarlunga Centre asset, 30 kilometres south west of Adelaide, was offered by Perron Group after a decade.

Vicinity controls the balance, valued late last year at $126.25m, reflecting a seven per cent capitalisation rate.

The centre underwent a c$50m refurbishment and extension in 2016.

JLL’s Nick Willis and Sam Hatcher were the sales agents.

Elsewhere in the South Australian capital, Mr Andrianakos’ Nikos Property Group owns neighbouring Flinders Street, CBD, offices – #50, which cost $175m in 2020 from Cbus Property, and #60, the ex-Santos House, which he purchased from Lendlease for $101.35m four years ago.

Also recently, the businessman, who made much of his c$900m fortune selling the Milemaker Petroleum business, outlaid $85.2m for a campus style office in Brisbane’s inner west Milton.

Colonnades is the executive’s first shopping centre.


On 35.8 hectares opposite Noarlunga train station, Colonnades contains 88,554 square metres of area, anchored to Aldi, Big W, Coles, Kmart and Woolworths, and with 120 specialty stores.

About 12,700 sqm, including part of a tenancy vacated by Myer in 2017, was repurposed for commercial, non-retail use.

There are also thousands of car parks.

“The sale is a reflection of the continued theme of major capital partnering evident in the retail space as a result of the strength of the economic recovery, the stabilisation of retail valuations and an increasingly compelling investment outlook for the sector,” Mr Willis said (story continues below).

“The highly competitive sales process resulted in deep bidding from a range of capital including a number of maiden investors to the sector,” he added.

“South Australian retail assets are tightly held and generally highly sought-after given their relative scarcity and value compared to other major metropolitan markets like Sydney and Melbourne,” according to the executive.

“We continue to see a significant pipeline of opportunities for capital partners to participate in the retail recovery and repositioning of shopping centres to extract additional value, with the experience of leading managers and specialists in the sector”.

Mr Hatcher said the agency has seen investment supply remain relatively constrained in the first quarter, following one of the largest transaction quarters ever on record in the last three months of 2021.

“The most aggressive capital continues to be focused on the convenience and large format retail sectors, however, with Colonnades and a number of pending transactions we are continuing to see investor confidence return for quality large regional assets,” he added.

The sale comes 11 months since Perron Group offloaded The Square Mirrabooka, north of Perth, to Melbourne fund manager Fawkner Properties for $195m.

Also mid-last year in the Western Australian capital, the group sold a Welshpool industrial investment to an owner occupier – banking $5.9m.

Six months ago the company divested two Perth CBD car parks for a total of $68.5m.

With significant development upside, those properties traded to GDI Property Group.

Perron Group was established by Stan Perron who died in 2018, aged 96.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of