Trio of Adelaide car parks on the block
One of South Australia’s top private companies, the Peregrine Corporation, has put three major car parks in Adelaide’s CBD on the block for $200 million.
The group, founded by Fred Shahin in 1984, is best known for its chain of 24-hour convenience stores operating under the On The Run brand, and is looking to sell the three long-held city assets as it expands it retail holdings.
Peregrine is looking to offload three properties — at 215 North Terrace, 52-70 Frome St (the East End Car Park) and 28-30 Hindley St tipped to appeal.
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Peregrine says it has decided to sell the properties in keeping with its desire to grow and expand the retail arms of its business.
The properties will be sold via an international sales campaign managed by JLL with Peregrine to keep its other significant property holdings, including a number of properties on Adelaide’s Rundle Mall, office towers and other assets.
The company is an active property player. In 2015 it unveiled plans to redevelop the former Mitsubishi Motors Australia test site outside Tailem Bend in South Australia. The group also picked up the Mallala Motor Sport Park last year.
The sale is being promoted as an opportunity for investors to access tightly held car parks.
Peregrine director Sam Shahin says the assets have been held for a long period. “Each of these properties presents an excellent opportunity for someone to add value via further development,” Dr Shahin says.
“Both the Hindley St and Frome St properties have approvals in place for the development of additional floors, while the North Terrace property is positioned to capitalise on demand from the nearby residential developments and Rundle Mall.”
Investment in Adelaide’s CBD is already above the 10-year annual average, with JLL predicting it to be one of the biggest years on record.
“Offshore groups are finding it challenging to deploy capital into core eastern seaboard markets while the Adelaide CBD is providing compelling opportunities in the $100 million to $250 million price point,” JLL head of retail investments, Australasia, Simon Rooney says.
Co-selling agent Jamie Guerra says the “location of the three key CBD car parks are ideally positioned to capitalise on the underlying strength of the Adelaide CBD”.
This article originally appeared on www.theaustralian.com.au/property.
