Pelligra Group continues to see “strong value” in the Adelaide commercial market following its recent purchase of the 50 Hindmarsh Square office building in Adelaide’s CBD.
Hindmarsh View Properties disposed of the three-level, 2,170 sqm office building, which formed part of the Citicom precinct.
“We continue to see strong value in the Adelaide commercial market and specifically in the precinct with ongoing demand for high quality office amenity within the CBD, particularly with ample carparking, which the precinct provides,” Pelligra Group Chairman Ross Pelligra said.
“We plan on completing upgrade works and bringing more quality tenants into the building over the short-term, with grander long-term plans for both of our adjacent land holdings.”
The building was occupied by various tenants including PPI Funds Management, Savills (SA) Pty Ltd, Surewise and Brown & Associates.
It had a recently refurbished lobby and lifts, and boasted strong sustainability credentials with energy-efficient LED lighting and a 5 Star NABERS Rating.
A significant selling point was the building’s location in Adelaide’s thriving entrepreneurial East End, with its accessibility to shops and cafés and close proximity to Rundle Street and Rundle Mall, according to Savills.
The transaction was brokered by Rino Carpinelli and Ryan Mills of Savills Australia.
“The acquisition of 50 Hindmarsh Square offered Pelligra Group an opportunity to not only purchase an adjoining asset amalgamating over 3,137 sqm of land but also acquire one of the prime corners of Hindmarsh Square with uninterrupted views and long-term development potential,” Ryan Mills, Associate Director Capital Transactions at Savills, said.
Last month, Pelligra acquired the Dandenong Plaza retail complex in Melbourne’s southeast for $145 million, following its hotel purchase in the same area last year.
Recent office deals in Adelaide include Cromwell Property Group’s acquisition of the Chesser House office tower in Adelaide from Harmony Property Investments and Arc Equity Partners for $81.35 million in April, reflecting a passing yield of 5.12%.
