A 12-level mixed-use tower on one of the most prominent corners on the Adelaide CBD’s most tightly held cultural boulevard is up for sale.
Located at 195 North Terrace, the tower comprised high-end retail on the ground floor, nine levels of adaptable office floors and two penthouse apartments.
It had a net lettable area of 4,271sq m with typical floor plates of 465sq m on a 567sq m site.
The asset will be taken to the market via an Expressions of Interest campaign run by Knight Frank agents Oliver Totani, Dominic Ong and Max Frohlich and CBRE agents Ian Thomas and Alistair Laycock on behalf of the vendor, Mandala.
Buyers are likely to see value in the low $20 million range, and with the property’s trophy like appeal, strong competition is expected.
Totani said the property was a general buying opportunity, being underpinned by its diversified income stream, rare North Terrace land holding and development potential.
“The asset is 89 per cent leased with a strong occupancy history of long-term tenants,” he said.
“The diversified income stream is secured with 29 tenants across retail, office, medical and residential.
“The property also has development potential, with no prescribed height limited, and there are multiple value enhancement initiatives available including end-of-trip facility upgrades and providing ideal floor plates for spec suites.
“We are still seeing good demand from buyers for quality assets in Adelaide, and particularly for development sites, with more than $2 billion in major building projects will be completed across the city this year.
“In the short term, a growing economy and tight labour market point to sustained momentum in capital market activity in South Australia.”
Thomas said 195 North Terrace occupied a premium corner site with frontage to North Terrace and Gawler Place.
“The tower prominently occupies one of the most prime CBD corners with amazing views over Government House as far as the future submarine shipyard to the north,” he said.
“It is central to the student accommodation precinct, close to the innovation and technology precinct of Lot 14 and there is the potential for high-profile signage.
“The Adelaide market continues to experience strong enquiry from a wide range of buyers on a local, national and global scale, with the city’s appeal bolstered by its strong historic performance.
“Adelaide’s commercial market continues to offer a compelling value proposition due to the yield spread between the eastern seaboard cities and the lack of stamp duty on commercial transactions.”