A rare retail asset within one of Australia’s most tightly-held retail precincts, Adelaide’s Rundle Mall, is expected to be met with strong buyer demand as it hits the market this week.
Situated on the lower levels of the iconic Unihouse building, the part three-level property at 160 Rundle Mall consists of three shops anchored by national retailers Chemist Warehouse and Oscar Wylee, spanning a total of 655sqm across the basement, ground and level one.
The asset is one of only four true corner holdings on Rundle Mall, Adelaide’s premier retail precinct, with 11.7 metres of frontage to Rundle Mall and 31.2 metres of frontage to Pulteney Street, as well as valuable rear lane access.
The property has an impressive net passing income of $837,488 per annum.
160 Rundle Mall is being taken to the market via an Expressions of Interest campaign run by Knight Frank agents Harrison Grice, Chet Al and Ned Walter.
The listing follows the sale of the neighbouring property 150 Rundle Mall – a heritage-listed building – late last year, which was purchased by National Retail Group (NRG Property) for $10.85 million in a deal negotiated by Knight Frank agents Max Frohlich, Ryan Mills and Chet Al.
Mr Al said it was expected 160 Rundle Mall would generate strong enquiry during the sales campaign, with strong demand for investment-grade assets in Adelaide.
“Last year 150 Rundle Mall was hotly contested by buyers, and we expect this property to be met with the same level of investor interest,” he said.
“There are very limited opportunities to buy into Rundle Mall, with assets on this strip being very tightly held, and corner holdings are extraordinarily rare.
“Adelaide is experiencing strong buyer demand overall for investment-grade assets, with zero stamp duty on commercial transactions a big contributor to investor confidence, and quality properties such as 160 Rundle Mall are highly sought after. “
Mr Grice said 160 Rundle Mall offered exceptional income security and immediate value-add potential via a recently vacated third tenancy.
“With strong tenancy covenants and significant long-term fundamentals, the property presents an outstanding opportunity in one of the most tightly-held and highly-productive retail precincts in Australia,” he said.
“The asset offers scale, profile and flexibility that is virtually unmatched in Adelaide’s premier retail destination.
“It occupies a commanding presence within the heart of the city’s shopping, dining and cultural epicentre.
“With its premium irreplaceable location, high foot traffic and proximity to key attractions, this is a rare chance to secure a piece of prime real estate in one of the most concentrated retail precincts in the southern hemisphere.”
Rundle Mall currently has the lowest vacancy rate of any of Australia’s pedestrianised malls at circa 3.4 per cent, and has more than 55 million visitors each year, making it the busiest shopping precinct in Australia by foot traffic. Those visitors spent $1.43 billion annually, which accounts for 57 per cent of all spending that occurs in Adelaide city.
Rundle Mall has more than 1000 stores, including three major department stores – Myer, David Jones and Kmart – and global brands including UNIQLO, H&M, Tiffany & Co. and RM Williams. It also has 300 services encompassing dining, entertainment, and professional services, 15 arcades and centres and more than 5,000 car parking spaces.
It is in close proximity to key infrastructure and amenity including Adelaide Oval, Adelaide University and cultural venues, including South Australian Museum and the Art Gallery of South Australia.
The Expressions of Interest campaign for 160 Rundle Mall will close at 4pm (ACST) on Thursday, March 5.
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