Arcana swoops on suburban Adelaide office

The 3159 square metre Arcana site (outlined), near Modbury Hospital.


Arcana Capital, led by ex-Queensland premier Campbell Newman, has swooped on a modern office built for the federal government in Adelaide’s north east Modbury.

The Modbury office was built for Services Australia in 2010.

Following an off-market campaign, the fund manager is spending $8.5 million for the Centrelink at 96 Reservoir Road, opposite Modbury Hospital, diagonally adjacent to Tea Tree Plaza.

The result reflects an 8.37 per cent yield.

Services Australia’s lease ends in three and a half years.

With 2113 square metres, the 4.5-star NABERs rated office was developed for Centrelink in 2010.

The 3159 sqm site has 90 car parks, many undercover.

Leiba Commercial’s Marc Leiba and Jonathan Rosenthal were the agents.

“In these uncertain economic times, government tenants are proving their worth as reliable defensive assets that provide secure income to investors,” Mr Leiba said.

“The purchaser was not only attracted to the government lease attached to the purpose-built property but also the stamp duty savings on offer that is afforded to investors who purchase property in Adelaide,” he added (story continues below).

Arcana expands in SA

SCentre recently bought the stake it didn’t own of the Tea Tree Plaza.

The wholesale fund which will hold 96 Reservoir Rd is forecasting an eight per cent annual distribution paid monthly.

Following the acquisition, Arcana, of which Mr Campbell is the managing director and chairman, has invested just over $250m, predominantly in its home state of Queensland, including last year with an Eight Mile Plains office, costing $13.6m.

Also in 2023, the fund manager picked up a Canberra office for $17.4m – a 9.3pc discount on what the vendor paid two and a half years earlier.

The group’s portfolio includes a West Kalgoorlie commercial development site and Perth CBD office at 190 Stirling St, too.

Modbury is about 15 kilometres from Adelaide’s CBD.

Last month we reported SCentre paid Dexus managed AMP Capital $308m for the half stake it didn’t own of Tea Tree Plaza and adjoining Tea Tree Plus – a 21.7 hectare amalgamation.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of