Arndale Shopping Centre in Adelaide has come to market, presenting a rare opportunity to aquire a stamp duty free 100% interest in a metro located, sub-regional shopping centre.
Set across a single level in Kilkenny, the centre is anchored by leading national retailers Woolworths, ALDI, Romeo’s Foodland, Big W, Harris Scarfe and Hoyts Cinemas, and provides an attractive majors WALE of 7.03 years by area and 7.44 years by income. The centre is also one of the largest sub-regional shopping centres in the northwest Adelaide metropolitan area.
Arndale Shopping Centre boasts total MAT reaching $198.3 million in June 2024 and annual foot traffic of 5.3 million.
Colliers managing director Asia Pacific for 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. It has price expectations in excess of $130,000,000.
“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.”
Lane added: “Adelaide offers an attractive yield spread relative to the capital cities in the eastern seaboard. 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 Adelaide CBD and benefits from accessibility from surrounding suburbs, facilitated by 1,916 car bays with multiple ingress and egress points, as well as the bus interchange located directly outside the centre.
Arndale Shopping Centre is for sale exclusively through Colliers and Dulwich Lane via an Expressions of Interest (EOI) campaign, closing on Thursday 29 August 2024.