Singapore buyer for prime Rundle Mall retail

Singapore buyer for prime Rundle Mall retailMyer Centre Adelaide has been sold for $288 million to Singapore-based real estate investment trust, Starhill Global REIT.The sale is the second largest retail transaction in South Australia, behind the per cent sale of Westfield Marion in 2003 for $323 million.Mr Ho Sing, chief executive Officer of YTL Starhill Global, says the company is pleased to have expanded its Australian footprint with the largest CBD shopping mall in Adelaide. “This asset fits our investment strategy of building a quality portfolio of properties in prime locations. At the purchase price of $288 million, Myer Centre Adelaide provides an attractive yield of 6.6 per cent,” Ho says.”Its premier location is likely to be one of the preferred destinations for international retailers who are expanding into Adelaide. As the retail space in the mall has yet to be fully optimised, it also presents good potential asset enhancement opportunities,” Ho adds.Located within Rundle Mall, Myer Centre Adelaide comprises more than 60,000 sqm of retail space and almost 10,000 sqm of office accommodation. The centre has recently undergone a $35 million upgrade including a complete refurbishment of Myer’s 30,000 sqm tenancy. JLL’s head of Retail Investments for Australia, Simon Rooney, negotiated the conditional sale and purchase agreement. He says there has been a notable increase in the volume of transactions in South Australia, indicating strong levels of interest and demand in the region. “Shopping centre transactions in South Australia have risen to $454.1 million in 2014, from $167.1 million in 2013,” Rooney explains.The proposed acquisition of Myer Centre Adelaide is expected to be completed by 30 June 2015, subject to the approval of the Australian Foreign Investment Review Board.