A rare opportunity to acquire a stamp duty free 100% interest in a metro located, sub-regional shopping centre is set to attract strong interest as Arndale Shopping Centre in Adelaide comes to market with price expectations in excess of $130 million.
Arndale Shopping Centre is one of the largest sub-regional shopping centres in the northwest Adelaide Metropolitan area, boasting strong fundamentals with total MAT reaching $198.3 million in June 2024, and an annual foot traffic of 5.3 million.
Conveniently set across a single level in the suburb of Kilkenny, the centre is securely anchored by leading national retailers Woolworths, ALDI, Romeo’s Foodland, Big W, Harris Scarfe and HOYTS Cinemas. The asset provides strong security of income with an attractive majors WALE of 7.03 years by area and 7.44 years by income.
Colliers Managing Director, Asia Pacific | Retail Capital Markets, Lachlan MacGillivray, in-conjunction with Matthew Lane of Dulwich Lane have been appointed to sell the centre, on behalf of MA Financial.
“Sub-regional shopping centres are in incredibly high demand, with buyers attracted to the strong underlying fundamentals and resilient performance offered,” MacGillivray said. “Arndale Shopping Centre has benefitted from significant expenditure in excess of $25 million since 2017, to meet the needs of its growing and gentrifying customer base. The high-profile site also provides a wide-range of further value-add opportunities, including the introduction of an external dining precinct.”
“Adelaide offers an attractive yield spread relative to the capital cities in the eastern seaboard.” Lane said. “ The stamp duty exemption allows for a saving in acquisition costs, reflecting a comparatively higher core capitalisation rate to equivalent interstate transactions and combined with Adelaide’s strong economic fundaments is making it an attractive investment destination.”
Arndale Shopping Centre occupies a landmark 10.7-hectare site with a low site coverage ratio of 37.1%, offering immediate value-add and development potential (STCA), including an external dining precinct, additional pad sites, and identified leasing remixing opportunities.
The centre is located only 7.5km from the Adelaide’s CBD and benefits from excellent accessibility from surrounding suburbs, facilitated by the ample car parking of 1,916 car bays with multiple ingress and egress points, as well as the bus interchange located directly outside the centre.
Arndale Shopping Centre delivers a high standard of convenience retailing; specialty tenants include a post office, pharmacies, banking services, community services, bakeries and coffee shops as well as a range of discretionary retailers, covering the daily essential of the expansive, family-based trade area.
The Trade Total Area (TTA) population is estimated at 293,001 in 2024, and the TTA retail spend is expected to grow from $4.84 billion in 2024 to $7.18 billion by 2036, an average growth rate of 3.3% per annum.
The South Australian economy ranked first in the CommSec Q1 2024 State of States, excelling in the areas of economic growth, unemployment, construction activity and dwelling commencements.
Arndale Shopping Centre is for sale exclusively through Colliers and Dulwich Lane via an Expressions of Interest campaign, closing on Thursday 29th August 2024.
