Opportunity to acquire two fully leased office buildings spanning a combined site area of approximately 4,499sq m located on one of Adelaide’s main thoroughfares.
Over the last 12 months, the Adelaide CBD has been characterised by an active investment market as investors chase prime assets. The value of major office sales in the last 12 months far exceeds any in the last decade, suggesting that many of these major acquisitions are counter-cyclical plays.
However, the quality of assets has been high, which bodes well for institutions and off-shore groups looking at comparable assets in other markets that are sitting on much lower yield ranges.
There is now a new opportunity to acquire two fully leased office buildings spanning a combined site area of approximately 4,499sq m located on and adjacent to one of Adelaide’s main thoroughfares, through Peter Isaksson, Rino Carpinelli and Ben Azar of Savills Australia and Josh Cullen and Richard Butler of INC Real Estate on behalf of Ascot Capital and Finance Mutual Australia, with price expectations in excess of $50 million.
60 Wakefield Street is a 6,900sq m six level building including basement parking for 35 cars prominently located on the corner of Wakefield Street and Gawler Place within the core of the Adelaide CBD. Wakefield Street is one of Adelaide’s main thoroughfares which contributes to the location’s role as the State’s Premier Business District.
21 Divett Place is a 9,620sq m 10 storey building with eight car spaces, located immediately north east and is linked at level 4 by a footbridge.
Both buildings were significantly upgraded and refurbished in 2002 and again in 2017 and provide quality accommodation for the State Government Departments who occupy both buildings on a 12 year lease term, with five plus five year lease options and an annual rental of circa $3 million.
In addition both buildings are leased on a Triple Net Lease basis.
According to Rino Carpinelli, Managing Director – SA for Savills Australia, the buyer profile for the year to June 2017 has been dominated by trusts, followed by foreign investors. However, the private investor category had the most transactions.
“The buildings are located in the state’s premier business district having the highest concentration of office, retail, mixed business, cultural, public administration, hospitality, educational and tourist activities and we believe this asset will attract interest from a range of national and offshore investors looking for a secure WALE and high calibre of tenants.
“The Vendors have had numerous off market approaches to buy the buildings so it has been decided to market both of them formally. Where else can you buy an Acre (half a Hectare) of land in the CBD?” he continued.
According to Josh Cullen from INC RE, South Australia has had 24 years of uninterrupted economic growth, averaging 2.5 percent annually between 1993 and 2015. Gross State Product is forecast to range between 2.00 and 2.25 percent over the next three years.
“SA is positioned with a competitive advantage in regards to purchasing property over comparable markets in other capital cities – it is now officially the lowest taxing state in Australia for commercial property transfers,” he said.
A 100 percent interest in 60 Wakefield Street and 21 Divett Place, South Australia is offered for sale through Savills Australia and INC RE via an International Expressions of Interest campaign closing 4pm (AEDT), Thursday 28th September 2017.
Learn more about Savills Capital Transactions.