City Cross Shopping Centre
Adelaide’s City Cross Shopping Centre. Source: Image supplied.
  • Makris Group successfully divested $110 million into two Adelaide assets
  • The two assets were City Cross Shopping Centre and North Adelaide Village
  • Transaction was realised as a sign of ongoing demand for retail properties

Marking the winding back of their retail real estate footprint, Makris Group, South Australia’s largest privately-owned property group has realised a combined $110 million portfolio transaction for two major Adelaide assets: the landmark City Cross Shopping Centre and North Adelaide Village.

Founded by Greek Australian businessman, Con Makris in the 1980s, the Makris Group’s sales were negotiated on behalf of CBRE’s Simon Rooney and James Douglas.

The transaction shows a sign of responding to ongoing demand for strategically located retail properties with future value-added potential.

City Cross Shopping Centre

The City Cross Shopping Centre transaction worth $60 million represents the latest deal between the Makris Group and Revelop, after the Sydney group’s 2019 acquisition of the Newton Village Shopping Centre in Adelaide’s north-western suburbs for $35 million.

This adds to Revelop’s two other South Australian retail investments – Renmark Square and Gawler Park Homemaker Centre.

The City Cross Shopping Centre transaction struck on a passing yield of around 6.25%, demonstrating the strong buyer appetite for CBD retail assets with significant upside.

“The long-term fundamentals for CBD retail remain strong, underpinned by key demand drivers such as significant residential development/construction, robust population growth, strong white-collar employment and both domestic and international tourism – which is expected to rebound post COVID-19,” said Mr Rooney.

The centre includes anchor tenants Harvey Norman, Rebel Sport and Australia Post, alongside 56 speciality tenancies, including a highly productive food offering.

There is also a master-plan development opportunity given the significant CBD freehold land holding, comprising seven separate allotments totalling 6,779 sqm.

Mr Rooney noted that retail centres are increasingly shifting towards mixed-use developments to drive foot traffic and increase trade.

“The City Cross site affords the flexibility to undertake separate mixed-use developments on individual sites or a combination of sites, with the potential for retail, commercial, residential and student accommodation uses, subject to the relevant planning approvals.”

North Adelaide Village

With backing from insurance company Qualitas, investment firm Greenpool Capital have acquired North Adelaide Village and an adjoining site at 85-87 O’Connell Street for $50 million.

The village has an affluent and high spending demographic, in close vicinity to the $535 million redeveloped Adelaide Oval and revitalised Riverbank Precinct. Primary trade area household income levels are 61.9% above the benchmark.

Focusing on convenience, lifestyle, service and fresh food, the centre is anchored by a strong-performing Romeo’s Foodland on a long-term lease until 2033 with a further 25-year option.

The centre also includes a Goodlife Gym, 34 speciality tenancies and four office tenancies.

North Adelaide Village Centre. Source: Image supplied.

Mr Rooney said the existing centre was well-positioned to benefit from projected growth in retail spending in the main trade areas, forecast to increase from $530.5 million to $1.07 billion by 2036. This represents an average annual growth of 4.2%.

“Neighbourhood convenience/non-discretionary anchored retail assets such as North Adelaide Village provide income certainty and security for incoming buyers, with non-discretionary retail representing 86% of the centre’s moving annual turnover and 79% of the total gross income.”

Population growth is also expected to increase within the main trade area from 32,270 to 41,320 by 2026. This represents an average annual growth of 1.4%, close to double the metropolitan average over the same period.


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