Exceed buys CBD office to renovate
Exceed Capital has picked up a B-grade Adelaide CBD office to refurbish.
For a fund now seeking investors, the group is paying $25.5 million for 19 Grenfell Street.
Shakespeare Property Group was the seller – the investor and fund manager outlaid $39.2m in February, 2016.
Forty eight per cent of the 19 storey, 10,530 square metre asset is vacant.
Knight Frank’s Max Frohlich and Ryan Mills brokered the off-market deal.
Shakespeare also had it for public sale via a different agency last year, when it was promoted as a value-add opportunity.
19 Grenfell Street
The result for 19 Grenfell St reflects a 6.7 per cent net passing yield.
Brisbane-based Exceed is now looking to raise $20m from wholesale investors for the purchase.
It is also seeking $12.75m in debt finance, much of which will fund a reposition (story continues below).
The asset already carries a relatively high 4-star NABERS rating
The ground floor is also activated with retail.
Spreading 937 sqm, the site has four street frontages.
The deal is an unusual disposal for the Melbourne based Shakespeare which has in the last 36 months bought offices in Sydney, Melbourne and Brisbane, and the ex-Palazzo Versace hotel on the Gold Coast. In April, it snapped up a woolstore-turned-Ovolo guesthouse in Pyrmont for $55m.
That said, it did sell an office-converted-hotel in Canberra’s Woden last August – banking $41.5m from Serene Capital.
Shakespeare paid $28.8m for that property in 2014.
That seller, Geocon, is believed to have spent $30m on the conversion, before offering it with a leaseback.
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