Campbelltown’s Stocks Corner sells in $10m deal at auction

Retail centre Stocks Corner at Campbelltown has been snapped up in a $10m deal, making it one of the largest auction sales of the year in SA.

Eight prospective buyers bid on the property at 617-621 Lower North East Rd, with the hammer coming down when it reached $10.57m.

The final bid was just $1000 more than the previous, with the sale price eclipsing the property’s reserve price by more than 15 per cent.

The sale represents a 4.69 per cent yield based on a net annual income of $483,348, setting a new benchmark for metropolitan retail investments over $5 million.

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Stocks Corner. 617-621 Lower North East Rd, Campbelltown.

Stocks Corner. 617-621 Lower North East Rd, Campbelltown.

Stocks Corner. 617-621 Lower North East Rd, Campbelltown.

The property, which is on a 5908sqm block in a prime position, is opposite Campbelltown Shopping Centre.

Its seven longstanding tenants include Vella Foods, Olympia Gym, Bombastic Coffees, Pup Boutique, Ultra Tune, Crowies Paints and Petland.

It was the first time in more than 25 years the property had been offered to the market.

RWC Adelaide agent Oliver Totani, who marketed the property with Jack Dyson and Dulwich Lane’s Matthew Lane, said taking the property to auction generated strong competition for the property.

“The owners needed to believe in our recommendation to take this property to auction, especially with others pushing for a more conservative expressions of interest process,” he said.

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Stocks Corner. 617-621 Lower North East Rd, Campbelltown.

Stocks Corner. 617-621 Lower North East Rd, Campbelltown.

Stocks Corner. 617-621 Lower North East Rd, Campbelltown.

“The result speaks volumes.

“Other agents were scared off by the likely end value of the asset, but we remained confident that the rare nature of this opportunity and the depth of capital in the market would generate intense competition.

“We were proved right.”

Mr Totani and Mr Dyson were confident there would be similar sales in the area over the next few months.

“Campbelltown’s continued growth, strategic infrastructure and limited commercial land supply make it one of Adelaide’s most compelling retail investment locations,” he said.