This article is from the Australian Property Journal archive
The sale of the AGL centre at 226 Greenhill Road Eastwood was negotiated by Colliers International and CB Richard Ellis and represents an initial yield of 8.57%.
Colliers associate director of investment services Ian Thomas said the number of enquiries received from genuine investors was incredible.
“In the end this was testament to the exclusivity of the asset being offered.
“There’s no doubt that some wariness still exists within the global financial markets and it was clear from the start of this campaign that this was going to be a real test for local investor sentiment but we quickly discovered that there was a clear distinction between the two, with multiple local and national investors and syndicates registering their interest,” he added.
CBRE managing director Philip Rundle said AGL were secured on a long term lease within months of the building being completed back in 2003 so the enviable lease profile was unquestionably a significant drawcard to the offering.
Rundle said throughout 2010, access to debt funding for real estate investment has continued to be tight, however, the marketing and successful sale of 226 Greenhill Road proved that there is still an abundance of active purchasers in the market, even in this $20 million plus price range, who are prepared to invest in quality assets, as they see the long term benefits associated with Adelaide’s robust office market sector.
“The building has a blue chip tenancy register with over 90% of the income derived from ASX listed entities including AGL South Australia Pty Ltd, AV Jennings Properties Pty Ltd, BBP Servco Pty Ltd and Market Equity Pty Ltd.
“There have been few options equal to the standard of this building; it really is in a class of its own. Historically there are very few purchaser opportunities in the Fringe precinct so we always expected that the market would respond well to the offering,” Rundle concluded.
Australian Property Journal
