Australian supermarket giant Coles Group (ASX: COL) has sold an Adelaide shopping centre it acquired just two years ago for $75.2 million to privately owned South Australian investor Taplin Group.
The move sets the scene for Taplin Group to potentially upgrade the property including the option of delivering residential apartments for the sprawling shopping centre site.
The sale of Kurralta Village, a sub-regional shopping centre in Adelaide’s inner south-west, has been secured through an off-market deal negotiated by Ryan Mills, Max Frohlich and Campbell Aitken, of Knight Frank.
The sale was struck at a marginally higher price to the $74.25 million paid by Coles in 2023.
Located at 153 Anzac Highway in Kurralta Park, the retail centre occupies a 3.2ha site and has about 10,669sqm of gross lettable area with 542 car parks.
Kurralta Park, which is anchored by Coles and Kmart and supported by 12 specialty stores, has been sold with full occupancy to deliver Taplin Group a net passing income of $3.5 million a year.
Taplin Group is one of South Australia’s largest family owned and operated real estate companies. Founded in 1932, the company has a portfolio of retail and commercial assets in the region.
“Following the sale, Taplin Group will expand the Kurralta Village Shopping Centre, with Coles to grow its footprint to have a full-line supermarket,” says Ryan Mills, Knight Frank’s institutional sales partner in South Australia.
“There are also options for a future potential residential apartment development on part of the site, which currently consists of a vacant allotment and residential flats, with projects of up to eight storeys prescribed under its zoning.”
Mills says the property is underpinned by a “highly defensive income stream” with more than 80 per cent generated from Coles and Kmart.
“Kurralta Village, which opened in 1969, has long been the dominant sub regional shopping centre in the catchment, servicing a large portion of the inner southwest of Adelaide,” he says.
“Its location was another appealing factor for the buyer, with the property being close to the Adelaide CBD, in addition to its prominent position on Anzac Highway, with more than 270 metres of frontage to the major arterial road.”
Among Taplin Group’s latest developments is The George Glenelg, a 60-room boutique hotel which opened last month.
Prior to the latest deal, the company also had a portfolio of six shopping centres including Mitcham Square, Marden, Bayside Village and Marryatville.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support