Coles owner buys up adjacent Adelaide shopping strip

Investors have snapped up a lucrative Adelaide shopping centre for $10.5 million as buyers continue to favour retail opportunities.

The Greenacres Shopping Centre – located 12km north east of the city – has been bought by Adelaide real estate investor PPI Funds Management, in a deal representing a yield of 7.25% on a fully-leased basis.

Savills Australia brokered the deal, with Capital Transactions agents Peter Isaksson and Rino Carpinelli negotiating the sale on behalf of Graham Investments.

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Carpinelli credit the busy suburban location as a key factor in garnering investor interest.

“Greenacres Shopping Centre is superbly positioned on the corner of North East Road and Muller Road, next to a high-performing Coles supermarket and Liquorland, giving it critical exposure to daily passing traffic,” Carpinell says.

The centre has also recently undergone an extensive refurbishment and has attracted specialty retailers including H&R Block, BankSA branch, Greenacres Surgery medical clinic and National Pharmacies.

Isaksson says PPI Funds Management has been “eyeing the asset for some time”.

“They already own the adjacent Coles supermarket and bulky goods site so Greenacres Shopping Centre is a strategic acquisition, as it consolidates ownership of a major metropolitan-district complex to a total site area of about 43,226sqm,” he says.

The attractive sale continues a run of South Australian shopping centres and similar listings on the eastern seaboard achieving record sale prices.