An Adelaide CBD office has changed hands for $47.2 million, in what is the first major CBD office investment transaction completed since the onset of COVID-19.
22-28 King William Street, known locally as the NAB House, presents a 14-level B-grade office building has 9,640sqm of net lettable area with office space over the basement, ground, mezzanine levels, as well as the upper 11 floors, with high valued retail space facing King William Street.
The property is home to NAB, with the financial institution occupying over 60 per cent, with the State Government and a mix of high quality corporate tenants making up the balance. It was exchanged with a WALE of three years and showing a core market yield of 6.75%.
The asset was purchased through an off-market deal by Intergen Property Group on behalf of a Singaporean family office from Southern Cross Equity Group Pty Ltd. Oliver Totani, Guy Bennett and Rory Dyus of Knight Frank negotiated the sale.
Mr Totani said the sale of 22-28 King William Street was another example of how robust of the South Australian office market.
“We don’t have the great peaks, nor the troughs – rather there is general stability,” he said.
“In times like this, where there is a global pandemic and uncertainty it’s worth its weight in gold.
“There are concerns with regards to the demand for office space moving forward, but we believe that Adelaide, given it doesn’t have the supply side pressures, is likely to be one of the better performers during this time of market dislocation.
“Whenever you have big market disruption there is always opportunity. So given South Australia’s super response to the health crisis and the relative good news around the broader local economy, our property market is likely to beneficiary moving forward. It might just be our time to shine.”
Mr Bennett said the sale of 22 King William Street further demonstrates Adelaide’s resilience and ability to trade through all cycles.
“Quality assets are always sought after by investors looking for strategic opportunities,” he said.
“King William Street is a prestigious Adelaide CBD address, being on the city’s premier boulevard.
“Its high profile position is a short distance to the transforming Riverbank Precinct development, the new Adelaide Oval, brand new Casino and Hotel development and Australia’s fast growing bio-medical precinct anchored by the recently built Royal Adelaide Hospital.
“The building is also within metres of Adelaide’s best retail precinct Rundle Mall and the best of the city’s thriving small bar and restaurant scene located within Leigh and Peel Street’s.
“The high profile location, is set to become the ‘new CBD’ as its direct locale is to be transformed by Charter Halls $200m office and retail development being metres from 22 King William Street.”