Cromwell Property Group is said to have Adelaide’s Rundle Place retail complex in its sights, following a significant restructuring of their portfolio.
The move into the retail sector is reportedly an interesting one, with some players pulling back or avoiding while the future of shopping centres remains speculatively unstable.
Rundle Place is arguably different from this outlook, as this prospective move by Cromwell indicates. The property forms part of a larger CBD complex and is trading well, particularly as new towers are built in Adelaide.
CBRE have also recently attested to the strength of Adelaide’s office market, and the CBD has seen some recent big plays by Scentre Group, Vicinity and Charter Hall.
Development of Rundle Place was completed in 2013, now offering a five-level shopping centre, with a 506-space carpark, on a prime location on Rundle Mall.
Current owners Blackstone, a private equity firm from the US, were in negotiations with funds manager AMP Capital back in May for the site, but the deal was never sealed.
Cromwell is already involved with Blackstone, currently undergoing due diligence on its prospective purchase of 400 George Street in Brisbane from a Blackstone and German funds management co-owned property, HSBC Trinkhaus, for about $530 million.
Around $2 billion worth of property investments are expected to roll through for the Australia group. Included in this is a proposal for a major redevelopment in Melbourne’s Collins Street, a hotel and office project in Sydney’s Chatswood and office to seniors living conversion in Tuggeranong, ACT.
Sam McVay of McVay Real Estate and Guy Bennett of Knight Frank are reported to be managing the $250 million Rundle Place deal, but confirmations from any party are yet to be validated.