A South Australia shopping centre has sold for $10.5million, representing a yield of 7.25 per cent on a fully leased basis.

Adelaide real estate investor, PPI Funds Management, acquired the Greenacres Shopping Centre via an off-market campaign that saw Savills Australia approach a select number of investors.

Capital Transactions agents Peter Isaksson and Rino Carpinelli brokered the deal on behalf of Graham Investments, achieving a rate of about $3,500 per sqm.

“PPI Funds Management had been eyeing the asset for some time,” Isaksson said.

“They already own the adjacent Coles supermarket and bulky goods site so Greenacres Shopping Centre is a strategic acquisition, as it consolidates ownership of a major metropolitan-district complex to a total site area of about 43,226sqm.”

Specialty retailers already operating in the centre include H&R Block, Greenacres Surgery medical clinic and National Pharmacies, as well as a BankSA branch.

Carpinelli said the buyer recognised the future upside potential of the property, based on its busy suburban location just 12 kilometres north-east of the CBD.

“Greenacres Shopping Centre is superbly positioned on the corner of North East Road and Muller Road, next to a high-performing Coles supermarket and Liquorland, giving it critical exposure to daily passing traffic,” he said.

Carpinelli said South Australian shopping centres were becoming a popular market among investors, as record sale prices being achieved for shopping centre listings on the eastern seaboard were pricing out local buyers.

“Savills is also sourcing speciality retail tenants for a new retail complex in Victor Harbor, which is anchored by a Coles supermarket, Liquorland and Bunnings Warehouse,” he said.