This article is from the Australian Property Journal archive
THE rise of offshore investors turning to Adelaide for opportunities has spurred Peregrine Corporation to put a portfolio of properties on the market, as the city of churches gears up for a blockbuster year in 2018.
Peregrine Corporation is selling 215 North Terrace, 52-70 Frome St (East End Car Park) and 28-30 Hindley St through an international sales campaign managed by JLL’s Simon Rooney and Jamie Guerra.
Peregrine Corporation director Dr Sam Shahin said the group has determined the divestment to be in line with the strategic plan of the overall business.
“It’s not every day you have the opportunity to purchase a property with its own set of traffic lights on a major city boulevard,” Shahin said, referring to the North Terrace property.
“We have held these assets for a long time and as with all our businesses, we have continually invested in them. Each of these properties presents an excellent opportunity for someone to add value via further development. Both the Hindley Street and Frome Street properties have approvals in place for the development of additional floors while the North Terrace property is positioned to capitalise on demand from the nearby residential developments and Rundle Mall,” he added.
“There is continued focus on the growth and expansion of the retail arms of the business. Peregrine retains significant property holdings including a number of properties on Rundle Mall, office towers and other assets,” Shahin continued.
JLL’s head of retail investments Simon Rooney said the sale presents a rare opportunity for investors to access a tightly held asset class, being predominately-commercial car parks.
“Investment activity for 2018 in Adelaide’s CBD is already above the 10-year annual average with JLL predicting it to be the one of the biggest years on record.
“Offshore groups are finding it challenging to deploy capital into core eastern seaboard markets while the Adelaide CBD is providing compelling opportunities in the A$100 million to A$250 million price point,” he added.
South Australian managing director Jamie Guerra said Adelaide is benefiting from significant infrastructure and private sector investment driven from CBD population growth which is projected to continue at 3% per annum, tightening retail vacancy as a result of retailers such as H&M and Foodland making major commitments in Rundle Mall and strong tourism growth.
“The location of the three key CBD car parks are ideally positioned to capitalise on the underlying strength of the Adelaide CBD and greater car parking demand as a result of tourism into the CBD, population growth and a resurgence in retail activity around Rundle Mall,” Guerra concluded.
Adelaide has seen a resurgence in deals after the state government abolished stamp duty on commercial property transactions on July 01 2018.
Even the state government is getting in on the act, offering to sell the historic Edmund Wright House.
Last month Melbourne petrol tycoon Nikos Andrianakos pumped $100 million into the Santos Centre. In the same month, a 50% stake in Adelaide’s largest office building, the Australian Tax Office’s headquarters changed hands for $135 million.
The largest deal in the first quarter was Centuria and Lederer Group’s acquisition of the Bendigo Bank headquarters at 80 Grenfell Street from Blackstone for $184.6 million.
Australian Property Journal
