Charter Hall has paid 1835 Capital $51 million for neighbouring Adelaide CBD offices rented to the state government.
The price reflects a 6.44 per cent yield.
The tenant, which built the assets about 40 years ago, is on a lease expiring in 2032.
On 4500 square metres, the holding has development upside then.
The state sold the properties for $37.5m in 2015 to Finance Mutual Australia’s 1835 Capital, which is headquartered in Adelaide, and Perth’s Ascot Capital.
The Adelaide offices
The largest Adelaide asset by land area, 60 Wakefield Street, is occupied by South Australia Police and includes 6900 sqm of lettable office area over four floors (story continues below).
There’s also an entrance level and basement 35 bay car park.
A link bridge at the top story connects the asset to 21 Divett Place – Forensic Science SA’s HQ – which rises 10 floors and includes 9600 sqm of commercial space.
The taller building sits on a 1300 sqm block.
Nearby occupiers include the South Australian Department of Education and Child Development, Santos, IAG and the Metropolitan Fire Service.
“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, education and tourist activities,” Savills’ Rino Carpinelli, who marketed the property with Ryan Mills, said.
Founder and managing director of 1835 Capital, Jason Di Iulio, added the company will now focus on its newly announced Trinity City Bio Medical office development on North Terrace, set to contain 35,000 sqm of area.