This article is from the Australian Property Journal archive
SOILBUILD REIT has acquired the Grenfell Centre for $134.22 million, in the second A-grade Adelaide CBD office tower transaction in recent weeks.
Both purchasers were Singaporean trusts, following Suntec’s $148.3 million purchase of the Allianz Centre.
Credit Suisse had been hoping for as much as $150 million for the Grenfell Centre, at 25 Grenfell St, when it listed the 24-level, 25,000 sqm building earlier this year, having paid $125.1 million for the asset three years ago and making improvements since.
The building sold 88% occupied and with a weighted average lease expiry of five years, and traded at a yield of around 7.25%. Tenants include the South Australian government, Minter Ellison, Lipman Karas, and JLL.
Last year, Soilbuild made its first foray into Australia in a $120 million-plus double play, acquiring the Australia Place office building in Canberra, and a chicken processing facility in the northern Adelaide suburb of Burton.
The trust has launched a preferential offering to raise about S$101.8 million to back the purchase.
Knight Frank and JLL marketed the Grenfell Centre.
This transaction comes hot on the heels of Centuria Capital paying $127 million for 80 Flinders St last month.
In the same month, Suntech REIT paid $148.3 million for 55 Currie St, a 12-storey Allianz Centre that is 91.6% occupied. The deal included the vendor, Arc Equity Partners, providing a 27-month rent guarantee for the vacant spaces.
Earlier this year Chris Lock’s IPG and Wingate purchased the 20-storey 77 Grenfell Street tower for $103.5 million, shortly after Melbourne-based Quintessential Equity bought 431 King William St for $43.1 million.
