Primewest sells Adelaide A-grade building for $35 million
Property fund manager Primewest has struck an off-market deal to sell its A-grade Adelaide office building at 60 Light Square for $35 million.
South Australian fund manager Harmony Property Syndication, part of the MRS Property Group, will be the new owner and will move into the building.
Primewest acquired the building for $22 million 4 years ago, and repositioned the property with a refurbishment and a more aggressive leasing program.
The group put in an upgraded entrance foyer and end of trip facilities at the eight storey building.
In 2014, Primewest took a gamble with the property because the anchor tenant was moving out but managed to refurbish the property and attract replacement tenants such as the National Centre for Vocational Education Research, which leased levels 4 and 5 of the building and the University South Australia which signed up for level 2.
The group subsequently signed up the Commonwealth Government for level 3 and Australia’s largest owner of caravan and cabin accommodation, Discovery Parks moved into Level 7.
Harmony Property’s occupation at level 1 will bring the building to near full occupation with a weighted average lease expiry of in excess of five years.
The 6956 square metre property also has 30 basement car spaces.
The office market in Adelaide has been awash with activity, anchored by Charter Hall’s new $250 million office tower next to the Adelaide GPO with a government pre-commitment.
In September last year, the group committed to build the 24,500-square-metre GPO Exchange development with 19 floors of A-Grade commercial office space, a new ground floor foyer, retail precinct along with car parks.
Late last year, Singapore real estate investor Mapletree acquired the office tower at 11 Waymouth Street from Dexus and Canada’s CPP Investment Board for $202.5 million.
