This article is from the Australian Property Journal archive
GERMAN group Atlantic Funds is hoping to reap $180 million for Adelaide’s Riverside Centre, after undertaking a refurbishment and leasing program of the distinctive government-tenanted tower.
The A-grade office has 22,691sqm over 10 levels, spread across four interconnecting octagonal pods around a central atrium and lift core. It is home state and federal government tenants including the SA Housing Authority, Department of Human Services and Department for Infrastructure and Transport.
Built in 1989 as part of the Adelaide Station and Environs Redevelopment (ASER) master-planned project, the Riverside Centre was upgraded in 2009 and has received $24 million in upgrades and tenancy fit-outs in 2020 following the state government committing to a new 10-year lease.
The building has a 5-star NABERS rating.
Its basement provides access to the Convention Centre carpark below, and there is a free-standing office and retail tenancy in the adjoining hotel forecourt plaza fronting North Terrace of 203 sqm.
Atlantic Funds had bought the building from ISPT in 2010 for $66.8 million.
Colliers’ Paul Van-Reesema, Alistair Mackie, Adam Woodward and James Mitchell, in conjunction with CBRE’s Alistair Laycock, Ian Thomas, Stuart McCann and Hugh Thomson, have been appointed to sell 115 North Terrace by expressions of interest closing 20th April.
Van-Reesema said the asset offers an “absolutely blue-chip AA-plus and AAA-rated cash flow” and a long 8.5 year weighted average lease expiry, while the upgrades providing minimum capex exposure to an incoming owner.
Riverside Centre sits on the ASER plaza, which is partially suspended over the railway platforms and tracks. The ASER project involving redevelopment of the Adelaide railway station to incorporate the Adelaide Casino, and the then0new Hyatt Hotel, Adelaide Convention Centre, Riverside Centre and the Convention Centre Carpark which sits below the ASER plaza.
Van-Reesema said Riverside Centre was strategically located on North Terrace at the epicentre of Adelaide’s burgeoning Riverbank Precinct.
“Riverside Centre is perfectly located to take advantage of the fastest-growing business, transport, and entertainment precinct in the Adelaide CBD – neighboured by the city’s biomedical and innovation hubs – where $6 billion of development is in the pipeline in one prime corridor,” he said.
To the west end of the property is Adelaide’s biomedical precinct and at the eastern end in the redevelopment of Lot Fourteen as an innovation and entrepreneur precinct and home of the Australian Space Agency.
Adelaide’s office market has just seen investment group BlackRock lob the 151 Pirie Street office building overlooking Hindmarsh Square for sale, little more than two years after acquiring the Adelaide home of KPMG for $92.5 million.
Recent sales have included Centuria Capital Group and MA Financial Group teaming up to buy the The Black Stump for $167 million with designs on repositioning the A-grade office tower.
Investors have been backing a rebound of the cities in Brisbane, Melbourne and Sydney of late.
