Buyers make play for popular entertainment complex
A popular northern suburbs entertainment complex has hit the market, promising an initial investment return upwards of $246,800 a year and potential to secure a higher lease from 2029.
The 2176sqm landholding at 10 Unity Way, Munno Para has been listed for sale with price hopes of more than $4m, under an expressions of interest campaign by Ray White Norwood commercial selling agents Matt Lazarus and Ronald Ozeri.
A two-storey building is currently leased to the Little Rockets play cafe and trading cards and collectibles retailer Bazinga, who have four years remaining on their five-year lease term, as well as the right to renew for another five years.
Mr Lazarus said the first year of the lease had provided a net income of $246,872 (plus GST), with the rent to increase 3.5 per cent each year for the remainder of the term.
The home of Little Rockets in Munno Para has been listed for sale.
The investment promises an initial investment return of $246,800 a year.
Inside the complex.
Even higher returns were possible once the current lease expired, he said.
“(The current lease price) is probably hovering just under where the (lease) market is at the moment so with natural compounding increases anyway and, as we see more focus on the northern suburbs … there’s more people (potential tenants) willing to pay more,’’ he said.
“At the moment, (the lease equates to) about $188 per sqm. But a property of this calibre is probably (worth) $200 a sqm.
“So we are still under market rent but this does have the nominal (3.5 per cent) increase coming up in April.’’
The high-exposure site, which is within the Playford Alive precinct and boasts corner frontage, was primed to take advantage of the population growth and “gentrification’’ of Adelaide’s north, Mr Lazarus said.
The state government recently announced more than 1300 additional homes will be built at Playford Alive, with more than 43,000 people expected to live in the precinct once the development is complete.
MORE NEWS
Couple turn putrid public toilet into beachside stunner
Rolling Stones-linked belly dancing studio hits the market
Entire ”junk city” for sale at price of an Aus unit
Little Rockets offers something for all ages.
The complex is popular with young parents.
Another interior shot of the play cafe.
Mr Lazarus said the site was also near to Riverlea, one of SA’s fastest growing residential developments, which will eventually be home to 40,000 people.
With no other competitors nearby, Mr Lazarus said the indoor play space was extremely popular with young families, prompting inquiries from at least one investor who owned interstate buildings occupied by similar play cafes.
In total, more than 30 inquires had so far been received.
The 1313sqm building, which comes with 29 onsite car parks with direct access from multiple frontages, was built less than a decade ago so had minimal maintenance requirements, Mr Lazarus said.
Offers close on Friday.
