This article is from the Australian Property Journal archive
INTERGEN Property Group has acquired Adelaide CBD building NAB House for $47.2 million on behalf of a Singaporean family office, as office transaction activity in the city of churches regains momentum.
The deal arrives at the same time as reports that petrol king Nick Andrianakos has added 50 Flinders St to the Santos Centre next door within his family’s company in a $175 million deal with Cbus Property.
The off market sale of NAB House at 22-28 King William St was negotiated by Oliver Totani, Guy Bennett and Rory Dyus of Knight Frank for Southern Cross Equity Group Pty Ltd.
The 14-level B-grade office building has 9,640 sqm of net lettable area with office space over the basement, ground, mezzanine levels, as well as the upper 11 floors, with highly valued retail space facing King William St.
Big four bank NAB occupies over 60%, with the state government and corporate tenants making up the balance,
It traded with a weighted average lease expiry of three years, and on a yield of 6.75%.
Totani said the sale was another example of how robust of the South Australian office market.
“We don’t have the great peaks, nor the troughs – rather there is general stability,” he said. “In times like this, where there is a global pandemic and uncertainty it’s worth its weight in gold.
“There are concerns with regards to the demand for office space moving forward, but we believe that Adelaide, given it doesn’t have the supply side pressures, is likely to be one of the better performers during this time of market dislocation.”
Adelaide CBD vacancies were at 14.2% according to recent Property Council of Australia data.
Bennett said the sale of 22 King William St further demonstrates Adelaide’s resilience and ability to trade through all cycles.
NAB House is in a high profile position close to Rundle Mall, the transforming Riverbank Precinct development, the Adelaide Oval, brand new casino and hotel development and Australia’s fast growing biomedical precinct anchored by the recently built Royal Adelaide Hospital.
Nearby, Charter Hall is developing its $200 million office and retail complex at 22 King William St.
Meanwhile, Nine Media has reported Nikos Property Group has bought the 15 storey building at 50 Flinders St. The 21,745 sqm building is leased to the People’s Choice Credit Union, the South Australian government, BUPA, Cbus Super and Fiefy’s Café, as well as a childcare centre.
Nikos Property Group, a private company owned by brothers Nikos, Paul and Theo, paid $101.35 million on a yield of 7.4% two years ago for the Santos Centre at 60 Flinders St.
Earlier this year, it splashed out $85.2 million for a 13,800 sqm office complex with two buildings in the Brisbane CBD fringe suburb of Milton.
