Inner city Adelaide motel fetches $12.4m
A contemporary motel investment in Adelaide’s inner south east has sold on a second attempt.
The Osmond Motel at 232 Glen Osmond Road, Fullarton, fetched $12.4 million – a 6.16 per cent yield – following an off-market campaign.
On a 2798 square metre irregular shape block also facing Florence Street, it contains 46 keys, with 72 rooms.
Some apartments are configured with two bedrooms.
All were refurbished before it was listed for public sale via a different agency in early 2023.
New long lease
The Osmond Motel was offered with a new 20 year lease to Dress Circle Apartments Pty Ltd, which has occupied two decades (in the 2023 campaign, there was 13.7 years left on the lease).
Annual rent rises are fixed at CPI plus one per cent.
The incoming owner will be able to claim depreciation benefits
“The passive investment market is experiencing a significant upturn largely driven by recent interest rate cuts and the strong anticipation of further reductions,” CBRE’s Rhyce Scott, who brokered the deal with Oliver Grivell and Ned Looker, said.
“These favourable conditions are forcing private investors to pursue opportunities more aggressively as they try and secure returns,” he added.
“The vendor here approached the CBRE team to divest this asset in a discrete, off-market approach, in which we were able to generate multiple offers and a strong result,” according to the executive.
Fullarton is about four kilometres from town.
Subscribe to our newsletter at the bottom of this page.
