Quintessential buys back Adelaide office

The building rises 17 storeys.

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.

Renewal SA recently awarded Quintessential the contract for a 16-storey Adelaide CBD 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.

Colliers’ Paul van Reesema and Alistair Mackie with CBRE’s Ian Thomas and Alistair Laycock were the agents (story continues below).

Centuria last week unveiled plans for an Adelaide CBD office.

Upgrade planned

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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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.