Fund managers swoop on two Adelaide offices

The Raptis family sold 63 Pirie Street after 24 years.

Two Adelaide offices which hit the market in July have found buyers.

In the biggest deal, Harmony Property Investments, controlled by MRS Property, is purchasing the 17 storey GHD building, at 211 Victoria Square, for $130.5m, reflecting a 7.69 per cent net passing return.

Harmony this week sold a five level office (centre) at 289 Wellington Parade, East Melbourne.

The result is a major drop on the initial guide – $170m-plus – which would have seen the transaction sealed on a sub six per cent yield.

MRS is now seeking to raise $70m, according to The Australian which is reporting the deal, promising an initial seven year return.

The buyer has managed the asset since mid-2014.

Earlier this week it banked nearly $52m from an East Melbourne office held for 13 years.

211 Victoria Square

On c1509 square metres, 211 Victoria Square is 99 per cent occupied.

GHD, Statewide Super and William Buck are amongst the tenants – all up there is 17,774 sqm of recently refurbished space.

The Weighted Average Lease Expiry is five years.

The vendor is a syndicate led by Ryan Lee (story continues below).

Quintessential Equity recently agreed to purchase 30 Pirie Street.

Cushman & Wakefield’s Jed Harley, Josh Cullen and Leigh Melbourne are the agents.

63 Pirie Street

Meanwhile, Capital Property Funds, in its maiden Adelaide deal, is paying $58.6m for 63 Pirie Street, on 1823 sqm at the south east corner of Gawler Place.

That seller is the Raptis family which listed after 24 years.

With 11,211 sqm of renovated area over 11 levels, it is 33pc vacant – the passing net rent is $2.52m.

Fully let, the return would circle $4.33m.

Mr Harley with colleague Peter Court and Colliers’ Paul Van-Reesema and Alistair Mackie were the agents.

The deals comes a week since we reported Quintessential Equity was purchasing the outgoing Telstra House, from Australian Unity, for $73m.

At 30 Pirie St, that asset abuts another office, 100 King William, which the Melbourne fund manager snared last year for $71.5m – but coincidentally also owned before 2008.

Subscribe to our newsletter at the bottom of this page.

Share or Recommend article

Marc Pallisco

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