Cherry Burger, Baker’s Delight stores among the unique businesses currently on the market in South Australia
A retro diner which recently settled a dispute over its million-dollar fit-out has been put on the market, while two major franchises and a $50m farm are also looking for new operators.
Business
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Enquiries from investors interested in acquiring businesses in South Australia have surged in recent months, according to broker Matthew Trim, as the economy bounces back from the Covid-19 pandemic.
Mr Trim, a consultant with property and business sales agency Commercial Adelaide, said enquiries were at a two-year high, but convincing owners to sell in the current low interest rate environment was proving a challenge.
“We’re seeing a lot of interest from people who are new to the market,” he said.
“For example it might be someone who’s worked in aviation for ten years and has got some money to spend to buy a gym and control their own destiny a little bit more.
“We’re also seeing a lot of money in the market for property at the moment - commercial and resi - and we’re seeing a bit of the same with businesses. People are buying businesses and getting a 50 per cent return on their money in some cases, compared to an investment property which would be around 5 per cent.
“When we sold some venues recently we had people come to us and say can you find me something like that - the problem is getting the stock.”
Mr Trim has recently sold several businesses in the hospitality sector including Press Food & Wine, Mr Goodbar and Blefari cafe on Victoria Square. He said confidence in the industry was on the rise.
“The leisure market has definitely rebounded, and by that I mean the Friday and Saturday nights,” he said.
“The weekday business crowd is probably not back to where it was but it’s getting better all the time, and some places that were more business market orientated have repositioned themselves to be a bit more weekend focused.
“The expectation was that when JobKeeper finished there’d be a glut of businesses on the market, and the fact there’s not shows good signs of where the economy’s at.”
Mr Trim is currently selling a number of businesses across Adelaide, including restaurants, gyms and Colonnades diner Cherry Burger.
NEW LISTINGS
CHERRY BURGER
Price: $49,000 or nearest offer
Retro American-style diner Cherry Burger opened in October 2019 with a local produce-driven menu including a range of burgers, fries, shakes and beloved ice cream brand AMSCOL.
The Colonnades outlet is owned by a group including prominent hospitality operator James Hillier, who has interests in a string of popular Adelaide venues including Golden Boy and Africola.
A Facebook post from the venue on May 17 confirmed it had temporarily closed its doors as negotiations with potential buyers progressed.
“We’ve recently received some interest in purchasing the business and are currently discussing options with potential buyers,” the post says.
“While we can’t disclose further details at this stage, we have decided to close the business until a sale can be finalised.”
The business is currently listed for sale by Commercial Adelaide’s Matthew Trim, who said the asking price of around $49,000 represented “a fraction of the set up cost” and the $1m fit-out.
“It’s a great opportunity for someone to come into a fit-out rather then spending the money themselves - we don’t expect it to last too long on the market.”
Cherry Burger recently settled a dispute with national construction firm FDC, which had claimed the venue owed it more than $250,000 for fit-out work completed between July and October of 2019.
RIJAMI FARMS
Price: $50m-plus
Investors with deep pockets are likely to go nuts for a major landholding recently listed for sale in the Riverland.
Located at Paringa, near the Victorian border, Rijami Farms is a large-scale almond orchard and landholding comprising 326ha of almond plantings, 56ha of wine grapes and more than 1500ha of undeveloped land.
Comprising four individual properties - including two developed properties and two greenfield sites - the operation was recently put on the market by the Smart family with a reported price tag of at least $50m.
The properties are being offered collectively or individually, and are located close to some of the country’s largest fruit and nut producers, including Select Harvests and Costa Group.
Expressions of interest close at 4pm on June 23.
SMOKY BAY GENERAL STORE
Price: $650,000 + stock
For anyone seeking a complete seachange in the wake of the Covid-19 madness, the Smoky Bay General Store offers a lifestyle opportunity far from the hustle and bustle of city life.
Known for its oyster industry, Smoky Bay is located on the Eyre Peninsula, 72km north-west of Streaky Bay and 44km south-east of Ceduna.
The general store is the only shop in town, according to the selling agent, offering “proven turnover” just “a few seconds walk to the waterfront”.
“The Smoky Bay General Store services the entire town and is the only shop between Streaky Bay and Ceduna,” the selling agent says.
“Customers include our dedicated locals, holiday makers and those just passing through to fill up with fuel and supplies.”
The general store comprises a dine-in cafe, takeaway food, Australia Post outlet, bottle shop and grocery store selling ice, fishing bait and supplies.
BAKER’S DELIGHT
Baker’s Delight is offering several opportunities to make some serious dough.
Franchisees are being sought for three new stores planned in Nuriootpa, Tanunda and Seaford, while the current operator of an outlet on Commercial Street in Mount Gambier is looking for a buyer to take over the business.
New franchisees are given a 16-week training program, while the franchisor provides ongoing support in areas including marketing, operations, HR, property and finance.
“This business requires an operator who enjoys working hard and is ready to take on a challenge of starting up a new site,” Baker’s Delight says in its marketing material.
“Ideally the business requires a motivated and committed individual with the ability to lead a team of people.”
New franchise agreements run for ten years, with an establishment cost of $500,000 to $600,000.
ESSENTIAL BEAUTY
Essential Beauty is a South Australian success story.
Since opening its first outlet in Adelaide in 1990, the franchise has expanded to more than 60 salons across the country.
There are now several opportunities for business owners interested in setting up a new outlet or taking over an established salon.
Salons at Churchill Shopping Centre, Munno Para Shopping City, Rundle Mall, Port Adelaide Plaza and Hollywood Plaza are all currently available to buyers, with no experience required.
The franchisor delivers training including a range of online courses and hands-on experience, while marketing support includes national promotions and bespoke campaigns.
Essential Beauty offers five-year or 10-year franchise terms.
HENRY ALBERT AND REGINALD RESCHKE VINEYARDS
It’s tough times for the wine industry as it responds to trade tensions with China, but that hasn’t stopped several vineyards and wineries changing hands in recent months.
CW Wines recently took over the Stonehaven brand, vineyards and winery in the state’s South East, while the Petaluma and Krondorf wineries are currently under offer.
One of the more recent offerings to the market is the Henry Albert and Reginald Reschke vineyards in the Coonawarra wine region.
Located around 10km north-east of the Coonawarra township, the vineyards comprise more than 140ha of red wine grape plantings, underground irrigation water entitlements and extensive frost control.
Colliers agribusiness director Tim Altschwager said the vineyards had supplied high quality fruit to several major wine companies including CW Wines.
“This is an excellent opportunity for existing industry participants, both domestic and overseas, to expand their holdings of red wine grape producing vineyards, and for investors to secure an established foothold in a world-renowned wine region,” he said.
Expressions of interest close at noon on June 25.
GRANCARI ESTATE
Price: $3.298m
Another vineyard offering, but this time much closer to town.
Located less than 30km south of the CBD, Grancari Estate in Onkaparinga Hills comprises a certified organic boutique winery and luxurious homestead.
Shiraz and Grenache vineyards are planted across the 7.2ha of land, surrounding wine production facilities and a five-bedroom home.
There are also recently approved plans for new wine tasting, reception and office areas and a conference centre.
The selling agent says the property offers flexibility to the buyer, who could continue to produce wine on-site or alternatively sell the grapes to other producers.
“It’s got it all - it’s up to your imagination what you would like to do. Maybe Airbnb or conference centre, or a lovely location for weddings - simply be the host of your own boutique winery.”
MALLEE FOWL RESTAURANT
Price: $495,000 (includes freehold)
The iconic Mallee Fowl restaurant in the Riverland is back on the market.
Owner Frank Donnelly first listed the business for sale last year, and is making another attempt to sell it after operating the restaurant for about four years.
It is licensed to trade seven days a week, but currently operates four days from Thursday to Sunday.
The venue has operated for around 20 years, with its Australian outback theme making it a popular spot for locals and tourists to Berri and the Riverland region.
The sale includes the restaurant, its paraphernalia, beer and display fridges, a staged amphitheatre with seating and all other buildings on the roughly 4.45ha site.
It also features an enclosed area outside for the emus, ducks, geese, chickens, lyrebirds, turkeys, a shetland pony and many other pets.
LI’L BOXES / OUT OF THE BOX DISPLAYS
Li’l Boxes manufactures a range of wooden boxes, specialising in shop displays, fruit & vegetable crates, presentation boxes, hampers and gift boxes.
The business was established in 2011 as an offshoot to sawmill and pallet-making company Northern Pallets and Crates (Norpal). Following the sale of Norpal last year, Li’l Boxes is now run independently from a showroom and workshop in Edinburgh North.
Customers across the food and beverage, fashion, retail and wine industries include Prohibition Gin, Rossi Boots and Beerenberg Farm, while pop-up displays have been produced for Rundle Mall, the Tour Down Under and numerous wineries.
The team behind Li’l Boxes launched sister brand Out of the Box Displays last year - producing a range of flat pack displays designed to be easily shipped around Australia.
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