This article is from the Australian Property Journal archive
AN office tower investment strategically located in the centre of the Adelaide CBD’s traditional core is available to buyers for the first time in almost a quarter of a century.
With 63 Pirie Street entering the market for the first time in more than 24 years, investors are being offered a shot at a comprehensively repositioned office tower spanning 11,211sqm across the tower’s 11 levels and basement, on the 1,823sqm corner site.
Jed Harley, Peter Court and Leigh Melbourne from Cushman & Wakefield, along with Paul Van-Reesema, Alistair Mackie and James Mitchell of Colliers International are managing the sale of the property.
“In addition to its very attractive existing investment metrics, 63 Pirie Street also offers significant income and WALE expansion upside through leasing the remaining 33% vacancy, with minimal CAPEX given the comprehensive and recent upgrades,” said Harley.
The building was erected in 1986 and has, under its current owners, undergone extensive upgrades to reposition the property to a high standard with a 4 Star NABERS Energy rating, since revitalisation works began in 2017.
Additionally, the building is expected to reach a 4.5 Star NABERS Energy rating or above upon 100% occupation.
While floor plates are largely in 1,070sqm format across levels 1 to 10, the tower also includes amenities located at each end of the side core and basement parking for 34 vehicles.
“Under its current ownership, 63 Pirie Street has been substantially refurbished and repositioned with upgrades to the lifts, air-conditioning, building management, entry lobby, bathrooms and end of trip facilities ensuring it competes strongly in its class, and accordingly it has recently achieved exceptional leasing momentum,” said Van-Reesema.
Additionally, the building’s ground floor was transformed in 2018 to include a new entry lobby and café offering by Hey Darling.
On top of base building upgrades, around 63% of the total NLA boasts new tenant fit-outs and a further 20% having base building refurbishments.
While the asset currently includes almost 50% of the NLA secured on new long-term leases, with a strong tenancy mix.
With tenants including the First Church of Christ, Lockhead Martin, Macquarie Group, Telstra Business Centre, Cowell Clarke and Bentleys Accountants forming the building’s staggered lease expiry profile.
“The asset offers an enviable cash flow with passing net income of $2.52m ($4.33m fully leased) and a 3.5 year WALE,” concluded Van-Reesema.
