Quintessential Equity has bought back an Adelaide office it sold in 2008.
The Commonwealth Bank building – 100 King William Street – is costing $71.5 million from ex-Video Ezy chairman Bob Maidment.
The buyer will hold it in the Master Fund No 2 – which was seeded last December with an $18.5m Rocklea industrial investment.
In March, the manager added to the trust, paying Goodman $115m for a new North Ryde office.
Quintessential is now raising proceeds for its Master Fund No 3 which has a c$200m mandate.
100 King William Street
Developed in 1983 as the Commonwealth Bank of Australia’s local headquarters, 100 King William St contains 18,555 square metres over 17 floors.
It occupies a 2541 sqm plot.
Mr Maidment paid out Quintessential and investor Stan Waldren for their stakes in 2008 – the trio paid $65.5m a couple of years earlier then undertook a refurbishment and secured the anchor for five years.
In 2014, the businessman tried to offload it for over $90m.
The property was sold this time around with a 25.4 per cent vacancy; this will double when CBA moves out next year.
The sale price reflects an 8.5pc passing yield.
On a fully let basis, this increases to c10.4pc.
Quintessential director Shane Quinn said the group plans to future-proof the building with market-leading amenities – the aim being to retain and attract tenants.
“This [deal] gives us a strategic foothold in arguably the best location in the Adelaide market, where we believe there is still a lot of value for assets able to be regenerated to meet the post-pandemic tenant demand,” he added.
The group recently completed a renovation of a 14-level office at nearby 431 King William St.
In March, Renewal SA awarded Quintessential the contract to build and own a 16 storey office – the centrepiece of the Lot Fourteen project.
The landlord will face competition, with Charter Hall recently announcing plans to construct a $450m commercial investment at 60 King William St.
Earlier this month, Centuria also unveiled plans for a small office, set to replace a car park at 57-61 Wyatt St.
Master Fund No 3
Mr Quinn said Quintessential will launch a capital raising next month for Master Fund No 3, which will seek value-add and core-plus investments, nationally.
“Like previous funds, Quintessential Equity’s newest fund will take equity commitments without identified acquisitions, and raise $125m to purchase approximately $200m of commercial office and industrial property,” he added.
“Our master funds are commitment-based, so effectively, we are capital ready to secure opportunities when they present,” according to the executive.
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