Arndale Shopping Centre put on the market by MA Financial
Owners are seeking big offers as investors circle another of the Adelaide’s largest malls.
Investment group MA Financial is seeking offers of more than $130m for the Arndale Shopping Centre in Adelaide amid a recovery in demand from investors looking to capitalise on the rebounding retail property market.
The investment group picked up the sub-regional centre, in the city’s north-western suburbs, as part of its acquisition of Armada Funds Management in 2017.
Set across a single level, the property is anchored by Woolworths, Aldi and Romeo’s Foodland supermarkets, as well as Big W and Harris Scarfe stores and a Hoyts Cinemas complex.
Its listing comes after Scentre Group and investment bank Barrenjoey teamed up to gazump acquisitive funds house IP Generation in acquiring Dexus’ 50 per cent stake in Westfield Tea Tree Plaza for $308m.
Dexus is also looking to exit its 50 per cent stake in Westfield West Lakes, with an off market campaign run by CBRE understood to have attracted interest from groups including IP Generation, Fawkner Property and Hong Kong investment group PAG.
Lachlan MacGillivray from Colliers and Matthew Lane from Dulwich Lane have been appointed to sell the Arndale centre, and are expecting to field offers in excess of $130m.
Mr MacGillivray said sub-regional shopping centres were generating “incredibly high demand” from investors, who were attracted to their “resilient performance”.
“Arndale Shopping Centre has benefitted from significant expenditure in excess of $25m since 2017, to meet the needs of its growing and gentrifying customer base,” he said.
“The high profile site also provides a wide range of further value-add opportunities, including the introduction of an external dining precinct.
“Adelaide offers an attractive yield spread relative to the capital cities in the eastern seaboard.”
The Arndale offering is also being pitched as a future development opportunity, given the existing shopping centre covers just 37 per cent of the 10.7ha site.
It currently comprises a mix of specialty tenants including a post office, pharmacies, banking services, community services, bakeries and coffee shops, as well as a range of discretionary retailers and car parking for more than 1900 vehicles.
Armada acquired the Arndale centre in 2014 for $152m.
It transferred to MA Financial as part of the acquisition of the Armada real estate portfolio, which also included the Ingle Farm and Hollywood Plaza shopping centres in Adelaide.
Hollywood Plaza was later sold for $80.3m to Melbourne’s LAS Group in 2021.
Meanwhile CBRE’s Simon Rooney is handling the off market sale of Dexus’ 50 per cent stake in Westfield West Lakes.
The mall is Adelaide’s fifth-largest regional shopping centre, anchored by Coles and Woolworths supermarkets, and department stores David Jones, Target, Kmart and Harris Scarfe.
Expressions of interest in the Arndale centre close on August 29.
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