This article is from the Australian Property Journal archive
ELANOR Investors Group has acquired the 1.237-hectare Campus DXC in Felixstow, one of Adelaide’s largest metropolitan office buildings, for $35 million, marking the third time the property has changed hands in five years.
It has a modern campus-style two-level office building of 6,288 sqm, home to global company DXC Technology Company until August 2025 with two five-year options. The group was formed out of the merger between Hewlett Packard’s Enterprise Services business and CSC nearly one year ago, and has a market capitalisation of more than US$30 billion.
Last year, the South Australian State Government awarded DXC a computing contract worth $394.2 million per annum.
The 196 OG Road property, on the corner of Payneham Road, returns a net annual income of around $2.8 million, and was purchased from Centennial Property at an initial yield of around 7.9%.
Elanor will place into its Elanor Commercial Property Fund, becoming its third property. It takes Elanor’s owned and managed assets to around $1.1 billion.
Centennial Property bought the site in 2014 for $30 million from Commercial & General, which had paid $16.9 million to the State Government for the then-vacant property just one year earlier before securing global computing giant Hewlett Packard as a tenant.
Hewlett Packard splashed out $10 million on a refurbishment before moving in during 2015.
The state government had initially constructed the property in 2002 for JP Morgan with plans for a second building on the site. It was also occupied by Air Warfare Destroyer systems.
“Campus DXC is a strategic acquisition that not only provides strong investment returns for ECPF but also presents future expansion opportunities. The asset compliments ECPF’s portfolio and provides further diversification for the fund,” Elanor’s co-head of real estate, David Burgess said.
Elanor said the acquisition provides significant strategic benefits for the fund, including diversifying the fund’s geographic exposure and tenancy mix, improving the portfolio’s weighted average lease term to five years and increasing the fund’s occupancy to 97%.
It said the fund would continue to pursue investment opportunities that provide strong risk adjusted returns.
Australian Property Journal
