Kurralta Village, a sub-regional shopping centre in inner Adelaide, has sold via an off-market deal for $75.2 million to a private South Australian-based investor which was negotiated by Ryan Mills, Max Frohlich and Campbell Aitken of Knight Frank.
The property at 153 Anzac Highway in Kurralta Park, just over 4 kilometres southwest of the Adelaide CBD, has approximately 10,669m2 of gross lettable area positioned on a prominent 32,570m2, with 542 car parks.
The centre is 100% occupied and anchored by a strongly-trading Coles and Kmart operating alongside 12 specialty stores, with net passing income of about $3.5 million per annum and a WALE of six years (by income).
The centre has been acquired by Taplin Group, that own and manage several other well established and high performing supermarket-anchored shopping centres in South Australia.
Mills said Coles Group had acquired the centre in 2023 for $74.25 million, with Knight Frank on-selling the property for a premium following the security of the major supermarket retailer’s lease.
“Following the sale, Taplin Group will expand the Kurralta Village Shopping Centre, with Coles to grow its footprint to have a full-line supermarket,” he said.
“There are also options for a future potential residential apartment development on part of the site, which currently consists of a vacant allotment and residential flats, with projects of up to eight storeys prescribed under its zoning.
“In addition to anticipated significant development upside, the asset is underpinned by a secure, highly-defensive income stream with more than 80% generated from strongly-performing national tenants Coles and Kmart that have an established and proven track record of delivering above average sales in the catchment area.
“Kurralta Village, which opened in 1969, has long been the dominant sub regional shopping centre in the catchment, servicing a large portion of the inner southwest of Adelaide. Its location was another appealing factor for the buyer, with the property being close to the Adelaide CBD, in addition to its prominent position on Anzac Highway, with more than 270 metres of frontage to the major arterial road.”
Frohlich said the sale of Kurralta Village underscores the strength of the retail market in South Australia.
“Investor confidence in retail assets is strong nationally due to transparent and resilient trading performance from major centres and retailers,” he said.
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