After four years off and on the market, Adelaide’s Rundle Place has sold for $210 million.
Located in the Rundle Mall shopping precinct, Rundle Place was bought by asset manager Fortius in partnership with property investor Irongate through its Irongate Templewater Australia Property Fund.
The centre is home to Adelaide’s only Apple Store, the Adelaide City Library, a Coles Supermarket and more than 50 specialty stores, but was hurt by the closure of Harris Scarfe’s flagship store last year.
Despite the closure, which left nearly one quarter of the precinct vacant, Rundle Place will provide the new owners with a passing yield of about 5.5 per cent, with Fortius now looking to attract national and international retailers to the 23,000sqm shopping complex.
Fortius chief executive Sam Sproats says the company also plans to upgrade Rundle Place, as Adelaide’s strong recovery in the wake of the coronavirus boosts retail confidence.
“There is resilience in the retail sector and it’s bouncing back quickly, supported by an overwhelming amount of investor interest we have received,” he says.
“We’re excited to be working in partnership with Irongate to enhance what is the premier retail offering within the Adelaide CBD, and apply the Fortius skill-set to revitalise the tenant mix and introduce leading national and international brands to Adelaide.”
The deal also saw Fortius acquire an adjacent seven storey car park with more than 500 spaces, and integration with the main shopping complex. It has a current yield of 5.8 per cent.
Irongate chief executive Graeme Katz says Rundle Place is a landmark asset which offers great value.
“Our wholesale funds management program allows us to take advantage of these kinds of deep value opportunities and we look forward to working with Fortius on unlocking further value,” he says.
Guy Bennett – 0418 808 548
Sam McVay – 0402 613 603
McVay Real Estate