Prime Adelaide CBD retail investment with 35-year OPSM tenancy hits the market

Adelaide, Australia – An opportunity to purchase a tightly-held retail investment on one of Adelaide’s most prestigious commercial boulevards has become available, with the ground floor of 198 North Terrace coming up for sale.

The property consists of a 280sq m retail tenancy underpinned by the longstanding occupation of OPSM, owned by Luxottica Retail Australia Pty Ltd, a subsidiary of globally listed eyewear giant EssilorLuxottica.

OPSM has continuously occupied the premises since 1991, representing approximately 35 years at the location and highlighting the strength of the trading position within Adelaide’s premier retail and cultural precinct and the tenant’s long-term commitment to the premises.

The retail asset generates a net income of $180,353 per annum, and the current lease extends through to the middle of 2029, with a further five-year option available.

The property is being taken to the market via an Expressions of Interest campaign run by Knight Frank agents Ned Walter and Harrison Grice.

Mr Walter said the asset represented a rare opportunity to secure a high-quality retail investment in the heart of Adelaide’s CBD.

"Opportunities to acquire a securely leased retail investment on North Terrace are extremely limited, particularly one backed by a globally recognised tenant with such a long occupation history," he said.

"OPSM has traded from this location for approximately 35 years, demonstrating the strength of the site and providing investors with a highly secure income stream supported by one of the world's largest eyewear groups.

"The property combines fixed rental growth, fully recoverable outgoings and a proven tenant covenant, making it an attractive passive investment in one of Adelaide's most tightly held commercial locations."

Mr Grice said the property's location was one of its key defining features.

"198 North Terrace occupies a truly exceptional position directly opposite the Art Gallery of South Australia and only moments from Gawler Place and Rundle Mall," he said.

"The asset sits at the crossroads of Adelaide's cultural, educational, business and retail precincts, benefiting from strong pedestrian activity and outstanding connectivity across the CBD.

"With more investors seeking secure, low-maintenance assets in prime metropolitan markets, we expect this property will generate strong interest from private investors, syndicates and high-net-worth buyers."

North Terrace is widely regarded as Adelaide's premier boulevard and is home to some of the city's most significant institutions, including Government House, the Art Gallery of South Australia, the South Australian Museum, the State Library and Adelaide University.

The property also benefits from its proximity to Rundle Mall, which attracts more than 50 million visitors annually.

The Expressions of Interest campaign for the property closes at 4pm (ACST) on Wednesday, November 4.

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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.