This article is from the Australian Property Journal archive
ADELAIDE’S commercial property market has recorded another transaction, worth $11.5 million.
Yesterday Colliers International sold a brand new office building at the gateway to Adelaide’s fringe precinct, for $11.5 million on a yield of circa 7.5%.
Also known as Tonkin House, the property is located at 66 Rundle St Kent Town, in one of Adelaide’s tightest office markets.
The property was offered for sale by Expressions of Interest which closed on March 18 2010.
Associate director of investment sales Ian Thomas said the property was purchased by a local private investor.
“66 Rundle Street is easily one of the best investment opportunities seen in this precinct in the last decade. The response during the marketing campaign was immense with a number of private investors registering their interest in the coveted building.
“We were basically flat out with enquiries from private investors who saw this as a quality asset at a price level that enabled them to step back into the investment market,” he added.
The sale of 66 Rundle Street at circa $4,300 per sqm also sets a new benchmark for the city fringe and provides a much needed boost to local confidence levels.
Thomas said following on from 2009, there has been a real gap in the sub $20 million market and to begin the first quarter with a result such as this provides a good indication of where the market is heading in the second half of 2010.
“We can see value is returning to the market and buyers are back,” he concluded.
Australian Property Journal
