Adelaide Commercial Sales High Across All Sectors

Adelaide’s Office, Retail and Industrial sectors are seeing 2014 shaping up as a significant year, with JLL’s figures for the first half showing the office sector has already hit a five-year high.

The total sales volumes across office, industrial and retail markets for the first half of 2014 totalled $447.97 million.

For the full year 2013, total sales volumes across the three sectors were $591.27 million.

JLL’s Managing Director for South Australia, Jamie Guerra, said the figures have been driven upwards by the Colonial and Dexus transactions of 11 Waymouth Street and 108 North Terrace, Adelaide for $229 million.

“The overall volume of commercial transactions is being driven by all three sectors across office, industrial and retail.”

Industrial transactions will exceed 2013 levels, according to Mr Guerra.

“Although only $43.7 million of industrial property traded in the first half, the recent acquisition of the Coles Distribution Centre in Edinburgh by Charter Hall for $157m will see volumes exceed the $150 million of industrial stock transacted during 2013.”

Mr Guerra said the Retail market in Adelaide is doing extremely well, with a number of Sub-Regional and Neighbourhood shopping centres trading in the market in 2014 – including the latest sales of Golden Grove and Dernancourt Shopping Centres.

JLL’s Head of Retail Investments, Australia Simon Rooney negotiated the sale of Golden Grove Shopping Centre in South Australia for $129.1 million to Challenger Life Company Limited.
Related Article: Unlisted Investor Secures Golden Grove Shopping Centre In SA
Golden Grove Village is anchored by tenants including Woolworths and Foodland supermarkets with a Gross Lettable Area (GLA) of 33,108.5 square metres. It is almost fully let at 99.6 per cent occupancy.

Dernancourt Village Shopping Centre, transacted by Mr Guerra, sold to Primewest for $25.5 million. The centre has a GLA of 8,422 square metres. It is anchored by a 15-year lease to Coles and a new 15-year lease to Goodlife Health Club.

“The level of interest in retail investments, as evidenced by the sales of Golden Grove and Dernancourt Shopping Centres, is reflective of the tightening in the broader Australian investment market and demonstrates the value purchasers are seeing in South Australia.

“Across the market, the strength of demand for quality investments is driving a tightening in yields. We expect further compression over the next 18 months,” said Mr Guerra.