Developers eye $15m Elizabeth South shopping centre revamp

100 Philip Highway, Elizabeth South.

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An under-utilised shopping centre at Elizabeth South is attracting significant interest from developers, with plans ranging from a full retail transformation to mixed use development that includes housing.

CBRE selling agent Rhyce Scott said purchase offers of $13.5m to $15m were expected for the 2.1ha property at 100 Philip Highway.

He said “pretty major’’ local and interstate developers were among those to express early interest in the shopping centre, eyeing the site for a considerable upgrade or to redevelop as mixed retail and residential space.

100 Philip Highway, Elizabeth South.

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100 Philip Highway, Elizabeth South.

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“Some groups are talking about adding some residential (to the site),’’ Mr Scott said.

“They (developers) would convert it to a small residential footprint (along Blake Rd and Chivell St) and probably try to utilise the frontage to Philip Highway for the retail part.

“There are lots of really exciting opportunities with this (site).

“It’s got fairly favourable (suburban activity centre) zoning which makes it pretty attractive for a variety of options.’’

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Mr Scott was unsure how many houses developers would seek to build on the site, which is adjacent to the Elizabeth South Primary School.

He said most plans included attracting a major supermarket chain, “ideally’’ Coles or Woolworths, to increase visitor numbers to a revamped shopping centre.

The current centre, which contains a FoodWorks outlet, was under-utilised, Mr Scott said, generating $833,355 gross annual income from 31 tenants, all of whom had short-term lease arrangements.

100 Philip Highway, Elizabeth South.

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100 Philip Highway, Elizabeth South.

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“There’s probably a reason why they (tenants) are paying pretty cheap rates,’’ he said.

“The centre needs significant investment into it.

“Some of the people we are chatting to, because of the costs of construction and things like that, will be trying to utilise the building (existing shopping centre) as much as possible but it would probably need a full gut.

“Something like this needs someone who can buy it for maybe $15m and spend (a further) $5m or $10m-plus (to improve it), depending on how big the development is that the buyer wants to do.’’

More than 35 developers inquired about the property in the first week it was listed for sale – more than double the number Mr Scott had expected so early in the marketing campaign.

The high exposure site has more than 23,000 vehicles pass by daily and is near Elizabeth City Centre, Lyell McEwin Hospital, Playford International College and Parafield Airport.

Expressions of interest close on June 11 at 4pm.