Lightsview Village Shopping Centre has changed hands for $23.5 million in an off-market transaction, reflecting a sub-5% yield and underscoring ongoing investor demand for high-quality neighbourhood retail assets. The fully leased centre was acquired by a local private investor from the vendor, Lofty Property Group.
The transaction was negotiated by CBRE Private Wealth’s Rhyce Scott and Ned Looker, with the sale highlighting the continued appeal of convenience-based retail investments backed by strong income security and exposure to growing residential catchments.
Located at 163-169 Fosters Road, Lightsview, approximately 8.5 kilometres north-east of the Adelaide CBD, the centre was completed in 2023 and comprises 3,745sqm of gross lettable area on a 10,950sqm site. The asset is anchored by Drakes Supermarkets and incorporates eight specialty tenancies, with the centre fully leased at the time of sale.
Mr Scott said the result demonstrated the depth of capital targeting defensive retail investments.
“The $23.5 million sale of Lightsview Village Shopping Centre reflects the strength of demand for newly developed supermarket-anchored retail investments. Investors remain highly attracted to assets that offer secure income streams and direct exposure to growing residential catchments.
“The depth of capital pursuing these opportunities continues to place downward pressure on yields, particularly for premium assets in established growth corridors. We expect strong buyer demand to persist and are currently working on a number of similar opportunities that we believe will attract significant market interest.”
Mr Looker said buyers remained highly active for quality retail assets offering long-term cash flow certainty.
“The sharp yield achieved reflects the strength of investor demand for quality retail investments across South Australia. Buyers are increasingly focused on assets that deliver secure income, strong tenant covenants and long-term growth potential, and Lightsview Village ticked all those boxes.”
The centre generates net passing income of approximately $1.12 million per annum and benefits from a weighted average lease expiry of more than seven years. Drakes occupies more than 70 per cent of the gross lettable area under a long-term lease that commenced in 2023.
The transaction adds to growing evidence of investor appetite for convenience retail assets across South Australia, with neighbourhood centres continuing to attract competitive pricing due to their defensive characteristics, strong tenant profiles and essential-service offering.
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