The Makris Group is set to divest two prominent Adelaide retail assets, including Rundle Mall’s blue-chip City Cross Shopping Centre and office complex fronting Grenfell Street. The offering will also include the North Adelaide Village neighbourhood shopping complex and an adjoining site.
CBRE’s Simon Rooney and James Douglas have been appointed to steer the sale campaign on behalf of the Makris Group, South Australia’s largest privately-owned retail property group.
Founded by Con Makris in the 1980s, the Makris Group has a large, diversified portfolio across retail, commercial and maritime sectors.
Rooney said the properties, which will be offered for sale individually or in-one-line, were expected to generate significant interest, providing strategic future development potential and value add opportunities.
“Investors will be attracted to the location of City Cross within Adelaide’s tightly held CBD, and the affluent locale of North Adelaide Village,” Rooney added.
“Investors who have been priced out of the east coast markets or have struggled to find high quality product have turned to Adelaide for better yielding opportunities, and both properties offer strong underlying cashflows with a history of robust trading performance.”
North Adelaide Village Shopping Centre and the adjoining 85-87 O’Connell Street is located in one of Adelaide’s most affluent and tightly held catchments
“There has been significant interest in Adelaide in recent years from domestic and offshore investors, who have acquired circa $700 million of retail assets. Adelaide’s retail yield spread relative to Sydney and Melbourne, with added tax efficiencies, make it an attractive state in which to invest.”
The City Cross Shopping Centre and office complex is the largest of the two offerings, providing a gross lettable area of 10,512m2.
The centre offers extensive and strategic frontages to Rundle Mall – the retail heart of the Adelaide CBD – and Grenfell Street, the city’s core commercial address for corporate and Government tenants.
The thriving CBD centre includes anchor tenants Harvey Norman, Rebel Sport and Australia Post, alongside 57 specialty tenancies, including a highly productive food offering.
Rooney noted that City Cross provided the opportunity to acquire a major retail CBD holding, with multiple mixed-use development opportunities that could meet cyclical demand across the commercial, residential and hotel sectors.
The existing centre services an expansive metropolitan trade area population of over one million, a worker population of 117,600 and a visitor market of over eight million per annum.
The trade area retail expenditure pool is $15.1 billion, including $7.9 billion in the primary trade area.
“This will be a key investor drawcard, as will the outlook for Adelaide CBD retail rents, which are expected to hold up well – in part, underpinned by the minimal supply of new retail space,” Rooney said, noting there was only 4,000m2 of stock in the pipeline over the next few years, compared to Sydney’s 120,000m2 pipeline.
Rounding out the portfolio is the thriving North Adelaide Village Shopping Centre and the adjoining 85-87 O’Connell Street.
Situated just 3km from the CBD, North Adelaide Village is in one of Adelaide’s most affluent and tightly held catchments, in close vicinity to the redeveloped Adelaide Oval and revitalised Riverbank Precinct.
The main trade area population of 32,370 is projected to increase to 41,320 persons by 2036, reflecting average annual growth of 1.4% per annum – close to double the Adelaide metropolitan average over the same period.
The centre benefits from a diverse tenancy mix and a focus on convenience, lifestyle, service and fresh food. It is anchored by a strong performing Romeo’s Foodland on a long-term lease until 2033 with a further 25-year option, alongside a Goodlife Gym, 34 specialty tenancies and four office tenancies.
The corner site offers future mixed-use development potential of up to six-storeys – subject to the relevant council planning approvals.
