CFS Gandel lines up Adelaide Myer centre

Adelaide's billion dollar Myer Centre is close to being sold to an institutional investor for less than a quarter of that price. CFS Gandel is touted as the likely buyer as current owner Singaporean property tycoon and Australian piggery owner Denis Jen cashes up for an investment binge in Asia.

With Westfield reportedly showing no interest in the Rundle Mall landmark, CFS Gandel is tipped as the likely buyer, paying close to the $250 million sought by Jen.

The CFS Gandel Retail Trust already owns the Elizabeth City, Golden Grove and Castle Plaza shopping centres in the SA capital and is one of Australia’s largest shopping centre owners.

While Jen will walk away from the deal with a healthy profit, the sale price has been marked down through the imminent start of seven-day trading throughout Adelaide.

The Adelaide Myer Centre, along with the rest of the CBD, has enjoyed a monopoly on Sunday trading, with major department stores in the suburbs until now prevented from opening.

The Singapore businessman paid only $151 million for the Myer Centre in the aftermath of the collapse of South Australia’s State Bank, which inherited the seven-storey retail complex from failed Queensland developer Remm.

Officially, the building cost around $750 million, but unofficially the actual cost was closer to $1 billion.

The Adelaide property is the third to be sold by Jen, who’s Australian company Intro International is based in Brisbane.

Jen recently sold his four-level Broadway on the Mall retail property in Brisbane to private investor Sunny Lettuce for almost $55 million.

Prior to that, Jen unloaded his Ashmore City Shopping Centre on the Gold Coast for $38 million.

He’s also selling a twin-tower office complex in Auckland for around $17.5 million.

Last year, Jen bought the New South Wales piggery once owned by former Prime Minister Paul Keating. He’s also owns Queensland’s Darling Downs Foods, owner of smallgoods brand KR.