ICAM secures retail precinct in $400m Adelaide Central Market redevelopment

A new retail hub at the heart of the transformation of Adelaide’s historic Central Market precinct has changed hands as a new group enters the $400m development.

Artist's impression of the Market Square development. Picture: Supplied by ICD Property

Fund manager ICAM has struck a deal to acquire a new retail hub at the centre of a $400m transformation of Adelaide’s historic Central Market precinct.

A Coles supermarket will anchor ICAM’s property holding, which will feature a mix of retail, medical and hospitality operators across two upper levels above an expanded market area.

The market itself, one of the oldest in Australia with roots dating back to 1869, will be retained and managed by the Adelaide City Council and Adelaide Central Market Authority.

ICAM’s acquisition price will be based on a formal valuation undertaken closer to the project’s completion date – towards the end of 2026 – when ICAM will take over the property from developer ICD Property. The price is expected to land at around $45m.

ICAM managing director Freddy Bartlett said the fund manager was working closely with ICD on negotiations with potential tenants for the retail hub’s 6000sq m of lettable space, which would “complement” the expanded market area below.

“We’re working very closely with ICD in terms of curating that tenancy mix,” he said.

“It will be mainly a non-discretionary type offering, so we’re looking for your pharmacists, your optometrist, dentists ... but we’re complementing that with destinational food and beverage that will be a drawcard for the market.

“It’s very much a collegiate group that’s looking to create an iconic destination for South Australia.”

ICD Property’s Matt Khoo, left, with ICAM managing director Freddy Bartlett. Picture: Dean Martin

Coles closed the doors to its previous store at the Central Market Arcade in May 2022 to make way for the $400m retail, office, apartment and hotel development – a joint venture between ICD and the Adelaide City Council – currently under construction at the site.

The supermarket giant has agreed to a 10-year lease for a new 1700sq m store, which will operate alongside a Liquorland bottle shop.

Mr Bartlett said South Australia’s retail sector was attracting strong interest from property investors, given the state’s strong retail turnover figures and population growth.

“I can safely say we’ve got a very high level of confidence that this will be significantly oversubscribed,” he said.

“The initial feedback we’re getting from investors is very strong on this. And given the nature of the asset, the deal that we’ve struck, the type of investment, there is a lot of demand.

“There’s certainly institutions expressing a cornerstone investment desire, so I think we’ll get an institutional cornerstone, but there will be a blend of family offices and direct high net worth (investors) as well.”

ICAM, founded by Mr Bartlett in 2015, has more than $730m in assets under management, ranging from commercial and industrial assets across Adelaide to the Churchill Centre North shopping complex in Adelaide’s north and two ports in regional South Australia.

The $400m redevelopment of the Central Market precinct, known as Market Square, will feature a hotel, 234 apartments, offices, a new market hall and elevated garden.

Law firm Thomson Geer and several state government departments have been secured as tenants for the nine-storey office building, while Treehouse Hotels will operate the hotel.

Up to 53 new market stalls, kiosks and other retail tenancies are being created to support an expanded market precinct on the ground floor.

ICD Property managing director Matt Khoo described it as a “transformative” project for the city.

“In securing ICAM as the investor for Market Square Retail, we have found another partner that shares our commitment to creating a world-class precinct that will revitalise the city and enhance its retail and cultural landscape.”