Credit Suisse to check out of Adelaide tower
Global investment giant Credit Suisse has put a prominent tower on Grenfell Street on the market as activity in Adelaide’s commercial property market gains momentum.
The tower at 25 Grenfell Street in the CBD, which Credit Suisse acquired late in 2016, could fetch as much as $150 million in the market now.
The Swiss-headquartered investment management house bought the asset from GDI Property Group for $125 million.
The building, well known for is distinctively dark facade, is in the heart of the Adelaide CBD, near Rundle Mall, Adelaide Central Market and Adelaide Oval.
JLL’s Jamie Guerra, Roger Klem, Rob Sewell and Stuart McCann, along with Knight Frank’s Guy Bennett, Paul Roberts and Neil Brookes, have been appointed to sell the property. JLL itself is a long-term tenant in the building.
“Investor interest in Adelaide continues to build off a record 2018 with in excess of $807 million of commercial transactions in the CBD,” Jamie Guerra said.
“With the Sydney and Melbourne markets at their peak, Adelaide is ideally placed to capitalise on the weight of funds chasing quality investment product.”
Activity in the Adelaide market has been heating up with stronger demand from the defence, mining and health industries.Infrastructure improvements such as the Ten Gigabit Adelaide network have also helped lure tenants into the city centre.
Among recent deals, Melbourne-based investment firm Wingate-IPG scooped up the A-grade office tower at 77 Grenfell Street in the Adelaide CBD for $103.5 million at a initial passing yield of about 8.4 per cent at the end of last year
The 15,888-square-metre tower was purchased from German asset management group Real I.S. and is mainly leased to anchor tenant, the South Australian government’s Department of Planning, Transport and Infrastructure.
A year ago Financial Review Rich Lister Paul Lederer partnered with property fund manager Centuria Capital Group to take over the Bendigo & Adelaide Bank headquarters in Adelaide, in a $184.6 million office tower deal.
Cbus Property is also investing as the tide turns in the Adelaide market, unveiling plans last month for a new $300 million office tower on Pirie Street.
The super fund developer took over the former Planet Nightclub site last year through an off-market deal with its previous owner, the Adelaide Development Company, after the site won approval for a 21-level office tower.
