Investors are presented with an opportunity to partner with one of Australia’s leading retail managers as a 50% interest in the Colonnades Shopping Centre in Adelaide is being offered to market reflecting a continuation of the major capital partnering theme evident in the retail space now.
JLL’s Retail Investments Team – Nick Willis and Sam Hatcher have been appointed to sell the 50% stake into Colonnades Shopping Centre on behalf of Perron Group via an international Expressions-Of-Interest campaign.
Colonnades Shopping Centre is an 88,554m2 regional shopping centre anchored by a convenience daily needs mix including Coles, Woolworths, ALDI, Kmart, Big W and Dan Murphy’s. The Centre also supports an additional 12,700m2 of non-retail uses, of which 42% is tailored to medical and social services.
The centre, managed by Vicinity Centres (who also own a 50% share), sits on a 35.8 ha site, ranking it the fourth largest shopping centre landholding in Australia, and is located in the heart of the precinct and adjoins the Noarlunga train station, hospital and SA TAFE.
Located 26 km south of the Adelaide CBD in the City of Onkaparinga, the area is one of Adelaide’s largest metropolitan catchments and is just a 30-minute drive to the McLaren Vale wine region.
Willis said, “The Colonnades Shopping Centre offering is unique in the context of the Australian market. The Centre is anchored by a strong performing convenience-based tenant mix that is further underpinned by a significant landholding adjoining major infrastructure including train station, hospital, and TAFE. These elements provide the foundations for ample future value-add and development opportunities.”
Hatcher adds, “In addition to the longer-term development potential the opportunity provides immediate leasing value-add through the repositioning of the former Master’s store, further strengthening the tenant mix.”
Myer vacated the Centre in 2017 and it has since been repositioned to accommodate a range of new retail and non-retail tenants along with significant refurbishments.
“The replacement of Myer with high and more intense retailer and non-retail uses is a great example of how retail can evolve for the better. Since Myer’s final departure, retail sales in the asset have grown almost 5% year on year,” Hatcher said.
“We continue to see a significant pipeline of opportunities for capital partners to participate in the retail recovery and repositioning of shopping centres to extract additional value, with the experience of leading managers and specialists in the sector,” Willis said.
JLL’s Retail Research (Australia) Senior Director, Andrew Quillfeldt said, “We recorded $2.3 billion worth of part share capital partnerships in 2021 across eight transactions. In addition, the recapitalisation of the AMP Capital ACRT fund for a further $2.2 billion reflected the re-emergence of domestic superannuation funds back into the retail sector, with CBUS and UniSuper.”
“The uplift in demand from passive capital into retail assets has been very significant by historical standards ($4.5 billion in 2021) and is a solid endorsement of the outlook for the sector. There were no similar part share capital partnership transactions in 2020 and follows just three in 2019 for a combined $1.3 billion, demonstrating the considerable uplift we’ve seen in the last 12 months,” Quillfeldt said.
Expressions-Of-Interest for Colonnades Shopping Centre close on Thursday 10th of March 2022.