Australian Unity pays $48.25m for Osborne’s Centre of Defence, land

Woods Bagot designed Osborne’s Centre of Defence.

Prime Space Projects has sold Osborne’s Centre of Defence – a 10 year old office – with an adjoining tract to Australian Unity for a fund.

On 2.51 hectares within the Osborne Naval Shipyards precinct, 620-628 Mersey Road, is trading for $48.25 million reflecting a 5.07 per cent net yield.

Part of the ground floor is fit out for a cafe.

It carried a guide of c$45m when CBRE’s Ian Thomas and Alistair Laycock with Knight Frank’s Guy Bennett and Oliver Totani listed it 10 weeks ago.

The address is about 25 kilometres north west of Adelaide.

Asset to be held by Australian Unity Diversified Fund

Australian Unity will use part of a $50m capital raising from October to fund the Osborne acquisition.

The investment is the 10th for the Australian Unity Diversified Fund, which holds a portfolio now worth c$575m.

Earlier this year it banked $72m – a significant uplift on the $44.2m in paid in mid-2014 – from the sale of an office in Melbourne’s inner-north Carlton to Japan’s NTT Group (story continues below).

Deal reflects strong investor interest in Adelaide: agent

Mr Thomas said 620 Mersey Rd result reflects the strong investor interest in the Adelaide market.

The property includes two 10 year old offices penned by Melbourne architect Woods Bagot, containing 8006 square metres of A-grade area and committed to the government until at least 2030.

Beside this, a 3000 sqm parcel of land has the potential to make way for another two commercial buildings, adding c6000 sqm.

Between the underground and open air bays, the site can park 330 cars.

About $90 billion of private sector investment across multiple projects is underway in the immediate area, the agents said.

Prime is a joint venture between South Australian builders Kambitsis Group and Simon Chappel Group.

Australian Unity is paying $48.25 million for the Osborne property, which includes two modern offices and 3000 sqm of land.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco