Melbourne investor Nick Andrianakos is paying Perron Group over $135 million for a half stake of the Colonnades Shopping Centre in Adelaides south west.
Set on a massive 35.8 hectares opposite Noarlunga train station, Colonnades Shopping Centre contains 88,554 square metres of NLA, anchored by Aldi, Big W, Coles, Kmart and Woolworths, and with 120 specialty stores. The Centre also supports an additional 12,700m2 of non-retail uses (previously a Myer space), of which 42% is tailored to medical and social services.
The centre underwent a c$50m refurbishment and extension in 2016, adding Aldi and re-configuring the old Myer store.
The site also contains an ex-Masters store which provides valuable upside for Nick Andrianakos to realise through further reconfiguration and leasing.
Vicinity owns the remaining 50% and controls the management rights to the Centre. The sale represents a premium to Vicinit’ book value of $126.25m which was based on a 7% cap rate.
The Perron Group have been slowly divesting assets from the property empire established by the late Stan Perron. The Perron Group have also recently sold Mirrabooka Square to Fawkner Property Group for $195m and Runaway Bay to a Qualitas / Greenpool JV for $128m.
Perron Group appointed JLL’s Nick Willis and Sam Hatcher to manage the sale of the Colannades.
Nikos’s Chief Executive Theo Andrianakos said, “The opportunity to acquire a substantial shopping centre such as Colonnades that is professionally managed by Vicinity is a good opportunity for us and helps diversify our investment holdings.”
Mr Willis said, “The sale is a reflection of the continued theme of major capital partnering evident in the retail space as a result of the strength of the economic recovery, the stabilisation of retail valuations and an increasingly compelling investment outlook for the sector.
“We continue to see a significant pipeline of opportunities for capital partners to participate in the retail recovery and repositioning of shopping centres to extract additional value, with the experience of leading managers and specialists in the sector,” said Mr Willis.
“The highly competitive sales process resulted in deep bidding from a range of capital including a number of maiden investors to the sector. South Australian retail assets are tightly held and are highly sought after given their relative scarcity and value compared to other major metropolitan markets like Sydney and Melbourne,” said Mr Willis.
Perron Group Managing Director, Ross Robertson said, “The sale of the Colonnades stake is consistent with the strategy of releasing capital for investment in other projects, including the proposed Cockburn Quarter development in Perth’s rapidly growing southern corridor.”