Tony Scaffidi splashes $46m on huge shopping centre in northern suburbs

The owner of the Paddy’s Market flea market in Pooraka has splashed out $46m on another highly sought-after shopping centre in the northern suburbs.

Gawler Green Shopping Centre has sold for $46 million.

Adelaide investor Tony Scaffidi has splashed out $46m on the Gawler Green Shopping Centre in Adelaide’s north.

Mr Scaffidi, who owns the Paddy’s Market flea market in Pooraka, Picked up the neighbourhood centre at a yield, or rate of return, of 4.7 per cent.

Located next to the Gawler Racecourse, the complex is anchored by a Coles supermarket and includes 14 specialty stores and a stand-alone Hungry Jack’s outlet.

The sale was brokered by Leedwell Property’s Andrew Zammit and Jamie Guerra, and JLL’s Ben Parkinson and Jacob Swan.

Mr Zammit said it was South Australia’s largest neighbourhood shopping centre sale so far this year.

Adelaide investor Tony Scaffidi is the new owner of the Gawler Green Shopping Centre.

“The interest in Gawler Green was extremely strong with in excess of 150 inquiries across private investors, syndicates and retail funds,” he said.

“The number of inquiries also reflects the confidence in the South Australian economy and property market, both of which have performed strongly through the challenges of Covid-19.”

Gawler Green is located on a 16,530sq m site, close to a Bunnings warehouse and Aldi supermarket.

Mr Parkinson said the tight yield reflected the weight of capital looking for investment opportunities in the South Australian property market.

“Investors into the South Australian market have confidence in the retail growth story with supermarket turnover 7.8 per cent higher in South Australia than before the pandemic,” he said.

“Over the first nine months of the year, we’ve seen opportunistic investors looking for value pursuing counter-cyclical investment in the retail space.

“As a result, transaction volumes in the retail sector have accounted for 50 per cent of total transactions in Adelaide across the office, industrial and retail sectors. This is well above the long-term 10-year average, where retail has accounted for 32 per cent of total transaction volumes.”

A pandemic-led boom in local shopping and a surge of private capital this year has driven values higher in the neighbourhood shopping centre segment, with yields dipping to record lows.

In November a private investor snapped up a new-format Coles supermarket in Melbourne’s inner suburb of Hawthorn for $24.5m, reflecting a yield of just 1.9 per cent.

Earlier this month SCA Property Group, one of the country’s largest investors in convenience retail with 97 neighbourhood and sub-regional malls, recorded a 9.7 per cent increase in the value of its portfolio in the six months to December.

It has partnered with Singapore sovereign wealth fund GIC in a new $750 m joint venture, which will invest in convenience retail centres across Australia.

Mr Scaffidi declined to comment.