Centennial snares Adelaide office for discount
Centennial has snapped up an Adelaide CBD office from the Raptis family.
The $50.5 million deal for 63 Pirie Street reflects an 8.6 per cent net passing yield.
Minor upgrades are planned for the property, at the corner of Gawler Place, connecting it to Rundle Mall.
The acquisition was opportunistic, Centennial’s head of Portfolio Management, Nick Lidonnici, said, representing a 16pc discount on contracted sale price three years ago.
It is also the company’s priciest office acquisition, he added. It formed in 2011.
“Sustained high building costs across the country also factored into our decision to acquire the office tower given its replacement value would be more than double the…price tag,” according to the executive.
“The building houses and has attracted high-quality tenants, across a diverse spectrum of industries with staggered leasing profiles representing a weighted average lease expiry of 3.7 years”.
Second time luckier
The Centennial deal comes after Sydney based One Managed Investment Fund agreed to buy the asset for $58.6m but failed to settle as scheduled by February, 2023.
With 11,329 sqm of lettable area, 34 car parks and end-of-trip facilities – carrying a 5-star NABERS score – Macquarie Group, Cowell Clark, Lockheed Martin and Tank Stream Labs are high profile occupiers.
It is 13pc vacant.
CBRE’s Alistair Laycock and Ian Thomas with Colliers’ Alistair Mackie and Jordan Schmidt were the agents.
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