Investor snaps up SA suburban centre

A Woolworths-anchored shopping complex in South Australia has sold for $21.81 million, highlighting the pent-up demand for retail investment opportunities in suburban precincts.

The convenience-based shopping centre at 297 Peachey Road, Munno Para, in Adelaide’s north, has sold to a local private investor following a hotly contested expressions-of-interest campaign.

Savills Australia’s Rino Carpinelli and Steven Lerche brokered the deal on a yield of 7.3 per cent, saying they had anticipated strong interest from investors after limited neighbourhood retail opportunities came to market last year.

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The centre occupies just over two hectares, generates about $1.6 million a year, and has a long-weighted average lease expiry of 9.12 years by area.

The centre presents a gross lettable area of 6390sqm, comprising the full-line Woolworths supermarket and associated BWS liquor store, which are operating under a new 12-year lease. There is also a mix of 17 speciality tenants, including a Smokemart, newsagency, cafe, medical centre and a Terry White Chemmart pharmacy.

Carpinelli said the purchaser “pounced on” the opportunity to get a foothold in Adelaide’s Playford Alive precinct.“There is no doubt there is repressed demand from investors wanting to enter growth areas such as Playford,” he said. “Buyers are looking to capitalise on Adelaide’s northern growth corridor and the large number of dwellings to be constructed within the city’s fastest-growing precinct.”

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