An 11-storey Adelaide office building has hit the market and is expected to fetch around $30 million. Picture: Colliers.
An upgraded Adelaide office tower is tipped to fetch a whopping $30m after hitting the market.
The 11-storey building at 111 Gawler Place, which has had a multimillion-dollar refresh, is expected to attract interest from private investors and syndicators right across the country.
Its location in the centre of the CBD, upgraded building infrastructure and potential to increase its income are its main drawcards.
Acure Asset Management acquired the property in 2021 and has since invested $1.64m in building upgrades as well as a further $820,000 in tenant fit-outs.
A refurbished ground-floor lobby, new airconditioning plant and equipment, and lift modernisation are among some of the upgrades to the building.
An 11-storey Adelaide office building has hit the market and is expected to fetch around $30 million. Picture: Colliers.
The multimillion-dollar investment in the building has made it more attractive to tenants, with more than a third of it leased to new tenants since Acure took ownership of it.
It is now 81 per cent occupied with a fully-leased net income of $2.32m.
Acure Asset Management’s Pete Isaksson said they have focused on improving the quality of the building and strengthening its tenancy profile since acquiring it.
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“We are pleased with the leasing outcomes and the position the asset is now in for its next owner,” he said.
Colliers national director of capital markets and investment services Alistair Mackie said the property had been significantly improved since it last changed hands in 2021.
“At $30 million, the price point should appeal to private investors and syndicators and we expect interest from buyers right across the country,” he said.
An 11-storey Adelaide office building has hit the market and is expected to fetch around $30 million. Picture: Colliers.
Colliers head of office capital markets and investments services in SA Jordan Schmidt said the new owners had opportunity to grow the building’s income.
“The remaining vacancy provides a straightforward opportunity to grow income with the major refurbishment program already completed and the asset benefiting from its position in the heart of Adelaide’s CBD,“ he said.
The 5658sqm building is on a 664sqm corner site of Gawler Place and McHentry St with direct access to Rundle Mall.
It has 14 tenants, including the South Australian Government, ENTX Ltd, Synergie Global Recruitment, Howe Jenkin, Smith Motor Company, Secure Parking, Compass Group (Australia) Pty Ltd and Australian Rare Earths.