Con Makris, has offloaded two shopping centres in Adelaide for a combined $110 million.
The billionaire has sold the City Cross shopping centre which runs off Grenfell Street in the Adelaide CBD, and the North Adelaide Village neighbourhood shopping complex in the wealthy suburb of North Adelaide.
The Markis Group had hoped to achieve $200m for the Centres but came well short with a sale to Revelop for $60m for City Cross and the North Adelaide Village Shopping Centre was sold to investment firm Greenpool Capital for c$50m, with backing from private financier Qualitas.
The City Cross shopping centre includes anchor tenants Harvey Norman, Rebel Sport and Australia Post. There is also a large food court and the complex has 57 specialty tenancies overall. It also includes an adjacent office complex.
The Centre currently has an occupancy of around 81% and a WALE of 2.8years. With speciality occupancy costs of circa 18% and following the impacts of COVID, the Centre is suffering from a disrupted economy.
The Centre was sold via CBRE on a 6.2% passing yield and an 8.49% fully let passing yield.
The CBD asset, which is situated on a landmark 6,779sqm freehold site, has significant redevelopment potential (STCA) with the ability to create a major mixed use master-planned project.
The North Adelaide Village is anchored by a Romeo’s Foodland, alongside a Goodlife Gym, 34 specialty tenancies and four office tenancies.
Mr Makris also sold the Newton Village Shopping Centre in Adelaide’s north-western suburbs to Revelop in an off-market deal worth $35 million.
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