This article is from the Australian Property Journal archive
LENDLEASE’S Australian Prime Property Fund Commercial is looking to offload its A-grade office tower at 60 Flinders Street in Adelaide, the headquarters of oil and gas group Santos, for more than $100 million.
Santos occupies the entirety of the 15,732 sqm building, with a lease expiry in 4.7 years. It was built in 2007.
APPF Commercial, alongside First State Super, acquired Two Melbourne Quarter for $550 million in March. The tower is being developed by Lendlease as part of its Melbourne Quarter precinct, which will comprise three commercial and four residential towers. APPF Commercial bought One Melbourne Quarter in 2016 for around $250 million.
Its investment in Two Melbourne Quarter followed the fund settling on the sale of the Myer headquarters at 800 Collins St in Melbourne to Canada’s Manulife for $290 million.
Earlier this year, the fund bought 16 Spring St in Sydney’s CBD for $50 million which adjoins its Swire House at 10 Spring St, that the fund acquired in September for $270.05 million.
CBRE and Knight Frank are marketing 60 Flinders Street.
At the end of last month, Primewest sold its 60 Light Square A-grade office building in the Adelaide CBD for $35 million, having paid $22 million for the asset little more than three-and-a-half years ago. Tenants currently in the 6,063 sqm building include Electoral Commission SA and UniSA, which signed a five-year lease over more than 900 sqm in September.
Primewest’s divestment is the second major transaction in Adelaide in a month after Elanor Investors Group acquired the Campus DXC, one of Adelaide’s largest metropolitan office buildings, for $35 million.
Australian Property Journal
