A Woolworths-anchored shopping complex in Munno Para, South Australia, has hit the market, presenting buyers with an opportunity to get a foot in the Playford Alive precinct.

The convenience-based shopping centre at 297 Peachey Road occupies 2.032 hectares and generates an estimated $1,613,400 per annum.

Savills Australia’s Peter Isaksson, Rino Carpinelli and Steven Lerche have been appointed to conduct the expressions-of-interest campaign, saying they anticipated strong interest from investors after limited opportunities came to market last year.

“There is no doubt there is pent-up demand from investors wanting to enter growth areas such as Playford,” Mr Isaksson said.

“Buyers are looking to capitalise on Adelaide’s northern growth corridor and the large number of dwellings to be constructed within the city’s fastest-growing precinct.”

Mr Carpinelli said shopping centres like Woolworths Playford were rarely traded in South Australia.

“This centre serves the everyday needs of the local community and is classed as a defensive asset, driven largely by non-discretional shopping,” he said.

The centre presents a gross lettable area of 6,390sq m comprising the full-line Woolworths supermarket and associated BWS liquor store, which are operating under a new 12-year lease. There is also a mix of 17 speciality tenants, including a Smokemart, newsagency, café, medical centre and Terry White Pharmacy.

“The centre offers significant depreciation benefits backed by a secure income stream and long weighted average lease expiry of 9.12 years by area,” Mr Isaksson said.

He went on to say that the shopping centre’s location within a new and highly regarded retail precinct would be a key selling point for astute investors.

“The centre is strategically positioned to benefit from uplift in local retail spend in the coming years, with the main trade area population estimated to increase from 35,340 people as at June 2018, to 47,890 people by 2031,” he said.

“Similarly, the current retail trade area expenditure of $397 million is forecast to significantly grow to $720 million by 2031.”

Woolworths Playford is part of the $1 billion urban development project, Playford Alive, which is being jointly managed by the City of Playford council and state government. The precinct comprises popular suburban-lifestyle facilities, such as healthcare, education, recreation and a new $250 million town centre.

Expressions of interest close Thursday 4pm 21 March 2019.

Learn more about Savills Retail Investments.