This article is from the Australian Property Journal archive
CREDIT Suisse could reap more than $150 million from the sale of the 25 Grenfell Street office tower in Adelaide’s CBD, having acquired the asset little more than two years ago for $125 million.
JLL’s Jamie Guerra, Roger Klem, Rob Sewell and Stuart McCann with Knight Frank’s Guy Bennett, Paul Roberts and Neil Brookes are marketing the Grenfell Centre via expressions of interest closing 11 April.
The 26-storey, 28,175 sqm building rises 103 metres, making it one of the key features of the city’s skyline, and is centrally located in the CBD within walking distance of Rundle Mall, Adelaide Central Market and Adelaide Oval.
The global investment firm picked up the building from GDI Property Group for $125.1 million, settling early in 2017.
JLL is one of the major tenants of the building.
Adelaide saw more than $807 million of commercial transactions in the CBD.
“With the Sydney and Melbourne markets at their peak, Adelaide is ideally placed to capitalise on the weight of funds chasing quality investment product,” Guerra said.
Bennett said occupier demand in Adelaide had maintained the positive trajectory that commenced in 2017 and strengthened in the past 12 months, driven by improved business confidence in the private sector.
“The $90 billion defence spend, the $6 billion bio medical precinct and no stamp duty are all compelling investment drivers for new capital trying to invest in Adelaide.”
Infrastructure projects such as Ten Gigabit Adelaide network have attracted companies such as Datacom and BAE Systems from outside of the CBD, as well as new entrants to the city including Technicolor and Allscripts.
Adelaide’s CBD office vacancy rate dropped for the fourth consecutive six-month period in the second half of 2018, according to the Property Council of Australia, as premium grade vacancies hit an historic low of 2.6%.
Last month, Cbus Property revealed plans for a $300 million, 17-level commercial development on the former Planet Nightclub site in the CBD, which it purchased last year.
In December, German fund manager Real IS offloaded the 20-storey 77 Grenfell Street tower to Wingate and IPG for $103.5 million, shortly after Con Makris has the 431 King William Street tower $43.1 million to Melbourne-based Quintessential Equity.
Also among key deals in the second half of 2018 were Melbourne petrol tycoon Nikos Andrianakos paying $100 million for the Santos Centre, following Charter Hall Long WALE REIT selling a 50% stake in Adelaide’s largest office building, the Australian Tax Office’s headquarters, for $135 million.
Australian Property Journal
