Adelaide retail investment leased to Star Liquor sells for $1.88m

Adelaide, Australia – A high-profile retail investment on Adelaide's Le Fevre Peninsula leased to Star Liquor Semaphore has sold for $1.88 million prior to auction following strong buyer competition for the asset.

The property at 130 Semaphore Road in Exeter, which occupies a prominent 566sq m corner site with 11 metres of frontage to Semaphore Road, was offered to the market for the first time in 44 years.

It is fully leased to Star Liquor Semaphore, part of the national Star Hotel Group, under a newly commenced 10-year lease running through to October 2035.

The property was purchased by an interstate investor following a sales campaign managed by Knight Frank's Harrison Grice and Ned Walter.

The asset sold prior to auction after generating more than 70 enquiries and six formal offers from local and interstate investors. The sale reflected a net passing yield of approximately 5.3%.

Mr Grice said the auction campaign for the property was highly competitive, attracting strong interest from investors across Australia.

“The strong result reinforces continued confidence in South Australian commercial property, with both local and interstate capital actively competing for well-located, long-leased assets.

“It also reflected the broader trend of investor capital shifting from residential property into commercial assets offering long-term income security.

"Investors are increasingly being drawn to commercial property opportunities in Adelaide that offer a combination of secure income, rental growth and an accessible price point.

"130 Semaphore Road ticked all of those boxes, with a newly commenced 10-year lease to one of Australia's largest independently owned hospitality and liquor retail operators and annual CPI-linked rental reviews providing built-in income growth.”

Mr Walter said the result reinforced the scarcity value of tightly-held investments along Semaphore Road.

"Properties along this section of Semaphore Road rarely change hands and this was the first time the asset had been offered to the market in 44 years," he said.

"That scarcity was a key driver of buyer interest, particularly when combined with the property's strong underlying land holding, long-term lease profile and strategic coastal location.

"Semaphore Road remains one of Adelaide's most sought-after coastal strips, benefiting from a vibrant mix of retail, hospitality and lifestyle amenity, as well as proximity to Semaphore Beach and the $25 million Semaphore Foreshore Redevelopment.”

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For further information, please contact:
Vanessa De Groot – Marketing & Communications, Knight Frank
Vanessa.degroot@au.knightfrank.com +61 410 460211

Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, the Knight Frank network has 600+ offices across more than 50 territories and more than 20,000 people. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Firm, please visit www.knightfrank.com.