Corval quits Adelaide office after revamp
Exceed Capital is buying an Adelaide CBD office which has just undergone a $10.7 million refurbishment.
The 16-level building at 26 Flinders Street is earmarked for a single asset fund this week being marketed to wholesale investors.
Corval was the seller.
It paid $36m in 2018.
A renovation completed last year upgraded the mechanical services, lifts, bathrooms, lobby and end-of-trip facilities.
With 10,217 square metres, it is 91 per cent occupied; tenants including Aussie Broadband, Samsung Electronics, Employers Mutual Management, Kelsian, BlueScope Steel, JCDecaux and Angas Securities – the latter which has signage rights.
The sale price will be revealed but based on the passing net income ($3.88m), a deal struck at a 7.5 per cent yield implies a value of c$51.7m.
At 8.5pc it would be worth c$45.6m.
CBRE’s Ian Thomas and Alistair Laycock with Knight Frank’s Max Frohlich and Ryan Mills were the agents.
Refurbishment realised
The office occupies 1645 sqm overlooking Victoria Square.
A rear plaza can be built on.
It also contains 68 basement car parks (continues below).
There are 24 tenant clients with staggered lease expiries.
Almost 40pc of occupiers are listed companies.
The balance are established organisations.
Corval acquired the asset when it was about 80pc occupied with a weighted average lease expiry of 3.2 years.
Brisbane manager backs Adelaide again
Exceed is forecasting investors an average cash return exceeding eight per cent a year over a five-year term.
The deal comes nearly two years since realestatesource.com.au reported the Brisbane-based fund manager bought 19 Grenfell St in the city, following an off-market deal with Shakespeare Property Group.
That property cost $25.5m, also for a fund.
With 10,530 sqm over 19 floors, it was 48pc vacant.
Coincidentally Mr Frohlich and Mr Mills brokered that deal too.
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