The Australian Prime Property Fund Commercial, managed by Lendlease Investment Management, is preparing to sell one of Adelaide’s premier office towers, 60 Flinders Street, as local and offshore institutional investors continue to circle city investment opportunities.
CBRE Capital Markets Director Ian Thomas and Knight Frank Joint Managing Director, Guy Bennett will steer the Expressions of Interest campaign for the landmark 60 Flinders Street tower.
Constructed in 2007, the A-Grade office building has won multiple design and construction awards. The circa 15,731.8sqm building is fully leased to a Top 50 ASX listed company.
CBRE’s Mr Thomas said the campaign coincided with ongoing institutional interest in South Australia, with record levels of A-Grade office property having changed hands in the Adelaide CBD in the past six months.
“Local and offshore institutional investors are focusing on Adelaide, drawn by the city’s highly compelling value proposition,” Mr Thomas said, noting that investor confidence was underpinned by a robust State economy, high levels of transparency and the market’s relative value.
“Prime grade office towers in Adelaide currently offer a 150-200bps yield spread to Sydney and Melbourne based on recent transaction evidence, which is well above the long-term average and provides investors with attractive risk adjusted returns.”
Knight Frank’s Guy Bennett said that a current program to abolish Stamp Duty had helped to promote high levels of liquidity and activity in the market, with South Australia set to be the only State in Australia with no stamp duty on commercial property transactions from July 1, 2018.
The Expressions of Interest campaign for 60 Flinders Street provides the opportunity to secure an A-Grade asset, strategically positioned between the city’s legal precinct and financial hubs in the core of Adelaide CBD
Mr Bennett linked the appeal of 60 Flinders Street to the building’s secure cash flow, underpinned by an ASX Top 50 company, combined with the tower’s next generation design and technology, which was on par with Premium Grade assets across Australia.
“60 Flinders Street benefits from unrivalled tenant amenity, including a high-quality lobby with concierge facilities, state-of-the-art end of trip facilities, large efficient floor plates and a market leading fit out with multiple breakout areas and collaboration hubs,” Mr Bennett said.
“The building is also highly sustainable and was the first in the state to achieve a five-star Green Star as built rating.”
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.