Charter Hall continues to strengthen its national commercial portfolio with the purchase of two Adelaide office buildings for $51 million on a 6.44 percent yield from South Australian based investor, 1835 Capital.
60 Wakefield Street and 21 Divett Place, Adelaide boast a 12 year triple net lease to the SA Government, and comprise a significant 4,500sq m land holding in the core of the CBD.
Built by the South Australian Government in the late 70s and 80s, the properties were significantly upgraded and refurbished in 2001/2002 and again in 2016/2017 and provide quality accommodation for the State Government Departments who occupy both buildings.
60 Wakefield Street is a 6,900sq m six level building on a 3,200sq m site and includes a ground floor, four upper levels of office space as well as a basement car park for 35 cars. An elevated link bridge at Level 4 connects to 21 Divett Place.
21 Divett Place is a 9,600sq m 10 level building on a 1,300sq m site and includes eight levels of office space, a basement, two plant room levels and eight open car parks.
The precinct is currently home to the South Australian Department of Education and Child Development, State Administration Centre, Santos, IAG, SA Police Headquarters and Metropolitan Fire Service.
Rino Carpinelli and Ryan Mills of Savills Capital Transactions negotiated the sale on behalf of, 1835 Capital, in an off market tender process, and said this was an exceptionally rare opportunity to acquire two fully leased buildings located on and adjacent to one of Adelaide’s main thoroughfares.
According to Rino Carpinelli, Managing Director of Savills SA, “The buildings are located in the state’s premier business district, on one of Adelaide’s main east west thoroughfares, having the highest concentration of office, retail, mixed business, cultural, public administration, hospitality, educational and tourist activities.
Mr. Jason Di Iulio, Managing Director and Founder of 1835 Capital, advised “That this was an outstanding outcome for all parties with his firms focus now squarely on their newly announced Trinity City 35,000sq m Bio-Medical office development on North Terrace amongst other significant developments across South Australia”.