Australian property group Centuria has bought a grade-A office building in Adelaide from Lendlease-managed Australian Prime Property Fund for A$127m (US$89.9m).
Centuria acquired the 80 Flinders Street building in the city’s core CBD precinct on behalf of a new unlisted fund set to launch in August, the buyer announced.
“As a market, Adelaide is continuing to transform, offering attractive fundamentals relative to other core CBD markets,” said Centuria joint CEO Jason Huljich.
80 Flinders St, Adelaide (image: Lendlease)
“The tenants within 80 Flinders Street are also well-positioned for growth, with South Australia’s strong commitment to a pipeline of approximately $130bn of infrastructure and defence projects.”
The asset, which was built in 2006 and refurbished this year, is fully let with multinational and ASX listed companies, including IAG and BAE Systems, accounting for most of its gross income.
Lendlease said the building’s lobby, on-floor and bike, locker and shower facility were upgraded as part of its asset repositioning.
Guy Bennett of Knight Frank and Ian Thomas of CBRE managed the sale.
The deal comes after Singaporean investor ARA Asset Management’s Suntec REIT purchased the Allianz Centre in Adelaide for $148.3m last week.
Property investors are increasingly looking at Australia’s smaller office markets like Adelaide, Perth and Brisbane in search of more attractive yields amid high pricing in Sydney and Melbourne.
Centuria is listed on the Australian stock exchange and has $6.2bn in assets under management.
ASX-listed Lendlease is a property and infrastructure group with operations across Australia, Asia, Europe and the Americas.