Adelaide commercial tower sells for $73 million

Adelaide commercial tower sells for $73 million
Staff reporterDecember 1, 2015

Cromwell Property Group has agreed terms for the sale of an office tower at 100 Waymouth Street in Adelaide for $73 million.

The sale price represents a premium of 17.6% over the book value of $62.1 million, a yield of 6.775% and a capital value of approximately $6,000 per square metre, reflecting continued strong investor demand for commercial office stock in major capital cities.

Cromwell CEO Paul Weightman said the company would continue to look to take advantage of market conditions to improve its $2.1 billion portfolio of direct property assets.

The property has 12,305 square metres of net lettable area, is fully tenanted and has a Weighted Average Lease Expiry (WALE) of 8.1 years.

It comprises a ground floor and 12 upper levels of office accommodation.

The building was commissioned in 1989 as the headquarters for the South Australian Workcover Corporation, which occupied it until June 2012.

The tower has since undergone a full refurbishment, achieving a PCA A-Grade rating. Cromwell acquired it in April 2003.

Origin Energy solely occupies the commercial floors with Beyond Bank occupying the ground floor retail space.

The property is close to public transport, retail, restaurants and cafes.

The sale is expected to settle on December 10.

Editor's Picks

First look exclusive: Polycell files Sandpiper redevelopment plans after owner buyout
Inside Melbourne's new nature-based neighbourhoods
First look: Stockwell files for new Vulture Street, West End apartment tower
From Broadbeach to Main Beach: Why local downsizers are making the move to Drew Group’s Lagoon Main Beach
SMA Projects makes downsizing easier at The Regent Fitzroy with ‘Settle When You've Sold’ initiative