Cromwell swoops on Adelaide office

The modernised 11 level office has sold for $81.35 million.

Cromwell has picked up another CBD office for its Diversified Property Fund, this time in Adelaide.

Chesser House at 91-97 Grenfell Street is costing the Brisbane fund manager $81.35 million reflecting a 5.12 per cent passing yield and 5.5pc core capitalisation rate.

The vendors, Harmony and Arc Equity Partners, paid Stockland $34.5m in 2009 – a major trough following the Global Financial Crisis.

It was offered this time around following a major refurbishment of the ground floor lobbies, lifts and climate system; it now has a 5-star NABERS energy rating.

End of trip facilities were also added.

DPF holds nine assets – Chesser House is the only one not in an east coast state or the ACT.

Last year, for the fund, the manager acquired two Brisbane CBD offices – 545 Queen St, for $117.5m and 100 Creek St ($184.7m).

Chesser House

Also known as 95 Grenfell St, Chesser House includes an 11 storey tower rising behind a historic brick façade.

It contains 11,121 square metres of A-grade area – of which about 4300 sqm is vacant (story continues below).

Cromwell recently paid $184.7 million for 545 Creek Street, Brisbane.

The Weighted Average Lease Expiry for the balance of the asset is 6.1 years.

The site spreads 1853 sqm.

“The Adelaide CBD Is set to benefit from significant economic activity as a result of state and federal government spending on defence, technology, innovation and bio-med,” she added.

Amongst these initiatives are the $35 billion Future Frigate project ad the $3.6b medical precinct, which is set to become the largest health cluster in the southern hemisphere, according to the executive.

“The fund continues to be a highly attractive proposition for investors, with more than $50 million of gross inflows coming into the DPF over the past six months off the back of a strong 12-month performance where the fund produced returns of 14.7pc,” Ms Tilse said.

By comparison the trust is presently promising a 5.5pc annualised distribution.

The company controls $7.8b of assets either direct or on behalf of third parties.

Knight Frank’s Guy Bennett and Colliers’ Paul Van Reesema and Alistair Mackie marketed 91-97 Grenfell St.

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Marc Pallisco

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