SA investors go shopping at Somerton Park

16 April 2019

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.

 
 

Key Contacts

Geoff Shuttleworth

Geoff Shuttleworth

Manager
Commercial & Industrial

Adelaide

+61 (0) 8 8237 5017

 

Steve Bobridge

Steve Bobridge

Director
Agency

Adelaide

+61 (0) 8 8237 5015