South Australian investors are the new owners of a Somerton Park shopping complex following a competitive auction among six bidders.
South Australian investors are the new owners of a Somerton Park shopping complex following a competitive auction among six bidders.
Sixty spectators turned out to witness the 1,474sq m shopping property at 212 Brighton Road fall under the hammer for $2 million, highlighting the strong demand for retail investments in Adelaide’s suburbs.
Savills Australia’s Geoff Shuttleworth and Steve Bobridge brokered the deal, saying they fielded interest from a diverse range of investor groups due to the three long-term anchor tenants.
“The majority of our enquiries came from private individuals seeking a secure investment in a relatively affordable price range,” Mr Shuttleworth said.
The property comprises six shops leased to three tenants, with Retire Invest taking shops one, two and three on an initial 15-year lease, and Vanilla Vibe Hair Salon occupying shop four on an initial five-year lease.
A publicly listed company, Invocare Australia, has recently committed to shops five and six, also on an initial lease of five years, with two five-year renewal options.
Mr Bobridge said the strong mix of tenants and prime Somerton Park positon were the key drawcards for the buyer, with the sale price reflecting a 5.5 percent yield.
“Long-term leases, including an ASX-listed company, and the main-road location, were contributing factors in the successful sale,” he said.
“The buyer recognised that the opportunity to acquire a retail property leased to reliable local businesses in this price range was extremely rare for Adelaide.”
Learn more about Savills Retail Investments.