Con Makris, Revelop in $35m deal for Newton Village centre
Adelaide developer Con Makris has sold one of the first major retail properties he acquired in the early 1980s, securing a $35 million deal with western Sydney purchaser Revelop.
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Adelaide developer Con Makris has offloaded the Newton Village shopping centre for around $35 million.
Western Sydney group Revelop has acquired the neighbourhood centre on Montacute Rd, and unveiled plans to breathe new life into it through a $10 million upgrade.
The property is Revelop’s third acquisition in South Australia, adding to its $25 million purchase of the Renmark Square centre in 2017 and the $25 million Gawler Park homemaker centre in 2018.
Newton Village comprises close to 10,000sqm of retail space, and is anchored by Coles and Woolworths supermarkets.
Revelop director Anthony El-Hazouri said a full-time centre manager from Colliers had already been appointed, while negotiations were ongoing with current and potential tenants.
“We looked at this place and it’s got its issues - it’s an old centre attached to a new one and unfortunately the cohesion wasn’t always there and nor was the mix,” he said.
“But fundamentally it’s got two supermarkets, it’s got parking, of which a large portion’s undercover, it’s in a key location with a really good demographic, and it’s growing - the metrics were there for a centre like this to work.”
As part of Revelop’s planned improvements to the centre, the company will upgrade lighting and common areas and introduce a children’s play area, while there are also plans to incorporate a child care centre, potentially on the rooftop car park.
“We think that’s important because one, the demand’s huge and there’s not a lot of supply, and secondly having that sort of facility within a complex like this provides parents with a lot of convenience,” Mr El-Hazouri said.
“We’re hoping to hit the ground running with Newton - we know what it needs, we’ve got a whole lot of different options and now’s deal time. We’re looking to spend about $10 million in the place, and that’s over probably 12 to 18 months.
“Where we add value is where we can see that an area has growth potential but the shopping centre may be lacking - that’s our area of expertise - we’re not passive, we’re extremely active.”
Since establishing Revelop in 2007, Mr El-Hazouri and business partner and cousin Charbel Hazzouri have developed and acquired residential, commercial and retail projects across NSW, Victoria and South Australia.
Mr El-Hazouri said the abolition of stamp duty on commercial property transactions was a key factor in the decision to expand the company’s portfolio in South Australia.
“It makes up about five per cent of your acquisition cost - if you can save that money, that’s essentially money you can reinvest day one,” he said.
“The state is investing in itself, and when a state does that you have the confidence that if the infrastructure is being invested into and the area’s being invested into then everything else will flow.”
Newton Village was the first major retail property acquired by Makris Group in 1982.
Mr Makris, who is seeking offers of more than $60 million for the recently listed Gilles Plains Shopping Centre, said it was the right time to sell the Newton centre.
“I’m very happy I sold Newton and I’m very happy to sell Gilles Plains if I get the right price,” he said.
“I’m a businessman and the best thing for a businessman at the moment is to have money in the bank.”