Developer goes on shopping spree for Greenacres

Adelaide real estate investor PPI Funds Management has bought the Greenacres Shopping Centre near the CBD for $10.5 million.

It sold fully leased with a yield of 7.25 percent, achieving around $3,500 per sqm.

Savills Australia brokered the off-market deal having approached a select number of investors.

Savills agents Peter Isaksson and Rino Carpinelli brokered the deal on behalf of Graham Investments, suggesting the buyers had 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," Isaksson said.

Specialty retailers already operating in the centre include H&R Block, Greenacres Surgery medical clinic and National Pharmacies, as well as a BankSA branch.

Carpinelli said the buyer recognised the future upside potential of the property, based on its busy suburban location just 12 kilometres north-east of the CBD.

“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,” he said.

Carpinelli said South Australian shopping centres were becoming a popular market among investors, as record sale prices being achieved for shopping centre listings on the eastern seaboard were pricing out local buyers.

“Savills is also sourcing speciality retail tenants for a new retail complex in Victor Harbor, which is anchored by a Coles supermarket, Liquorland and Bunnings Warehouse,” he said.