Developer sells two prominent Adelaide shopping centres for $110m



Two major Adelaide retail properties, including City Cross shopping centre, have been sold. Picture: Supplied by CBRE

Property developer Con Makris has continued his exodus from the Adelaide property market, selling two prominent shopping centres for $110 million.

Western Sydney property group Revelop has snapped up the City Cross centre in the CBD for $60 million, while Perth’s Greenpool Capital – with the backing of ASX-listed investment firm Qualitas – has paid $50 million for the North Adelaide Village centre and an adjoining site.

City Cross offers frontage to Rundle Mall and Grenfell Street, and is anchored by major tenants Harvey Norman, Rebel Sport and Australia Post. The 10,512sqm property comprises 56 specialty tenancies, including a major food court.

North Adelaide Village is anchored by a Romeo’s Foodland, alongside a Goodlife Gym, 34 specialty tenancies and four office tenancies.

The corner site also offers future mixed-use development potential of up to six storeys.
CBRE’s Simon Rooney, who brokered the sales alongside James Douglas, said retail property continued to attract interest from investors despite the uncertainty surrounding COVID-19.

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

“In the case of City Cross, the sale provided an opportunity to acquire a major CBD retail holding offering multiple mixed-use development opportunities.

“This future flexibility was a major drawcard for Revelop, as was the centre’s strategic Rundle Mall location, which attracts 24 million pedestrian visitors annually.”

City Cross is Revelop’s fourth major investment in the South Australian property market, following its most recent $35 million purchase of the Newton Village shopping centre in 2019, a property also acquired from Mr Makris.

The billionaire investor relocated his head office to the Gold Coast in 2017 and has since redirected investment to the Sunshine State.

The North Adelaide Village shopping centre. Picture: Supplied by CBRE.

He has been selling down his portfolio of shopping centres and office towers in Adelaide, including a 15-storey building on King William Street for $43.1 million.

On the Gold Coast, he owns the upmarket Marina Mirage and Oracle Boulevard shopping precincts.

The City Cross property sold at a passing yield of around 6.25%.

Mr Makris declined to comment.