A major large format retail centre site in Adelaide Hills sold in a structured fund-through deal

A block of land in South Australia’s fast-growing growing Mount Barker-Littlehampton growth corridor in the state’s southeast has sold via a fund-through deal, with an institutional grade large format retail centre being built on the site.

Construction of the development on the 11,445sq m site, known as the Totness Retail Depot, is well underway, with completion scheduled for June 2026.

Totness Retail Depot will be anchored by a high-quality national tenant mix, with fully pre-committed leases to Officeworks, Petbarn, Repco and AMX.

The property was purchased by a local private investor in a deal negotiated by Max Frohlich and Ryan Mills of Knight Frank acting on behalf of the vendor, Emmett.

Mr Frohlich said the property had appealed to the buyer due to its growth potential, being situated in a fast-growing area of South Australia, and its secure income backed by a diversified mix of top-tier brands in essential retail categories, with rents subject to annual CPI reviews and fixed increases, in addition to the depreciation benefits anticipated and SA’s stamp duty saving, materially enhancing after-tax returns.

“The site is positioned in one of the state’s fastest-growing local government areas, with the population forecast to grow by more than 64 per cent over the next 20 years, which will underpin demand for retailers,” he said.

“The Totness Retail Depot is already 100 per cent pre-committed to top-tier brands in essential retail categories, with initial leases of seven or eight years, providing the incoming buyer with a secure weighted average lease expiry (WALE by Income) of approximately 7.6 years.

“The development is also being undertaken by Emmett, a highly regarded builder and developer with an excellent track record across commercial, industrial and retail assets.”

Mr Mills said current market conditions for retail were favourable.

“Large format retail shopping centre retail growth is forecast to accelerate in South Australia underpinned by existing tenant demand trends, with retail spending up and vacancy rates declining,” he said.

“Together with strong demand side fundamentals, inflated and growing economic rents, due to rising construction costs and the increased costs of capital, have limited the forward supply pipeline and put upward pressure on market rents.