Soilbuild Business Space REIT (“Soilbuild REIT”), a Singapore and Australia-focused real estate investment trust, has acquired 25 Grenfell Street, an iconic multi-tenanted freehold Grade A office tower centrally located within the core of Adelaide’s CBD, for A$134 million (S$127.51 million).
“We are delighted to expand our footprint in Australia with the acquisition of 25 Grenfell Street, an iconic Grade A freehold office building situated in the heart of Adelaide’s Central Business District (“CBD”). Underpinned by a strong cashflow of high-quality office tenants, the acquisition will further enhance the quality of Soilbuild REIT’s portfolio and provide income and geographical diversification,” said Mr Roy Teo, Chief Executive Officer of the Manager.
The Grade A office tower has a site area of 1,968 square metres (“sqm”) and net lettable area (“NLA”) of 24,969 sqm comprising of 22 levels of office floors on top of 2 levels of retail floors together with 30 car park spaces and end-of-trip facilities. The committed occupancy of 25 Grenfell Street is 88.4%11 with a WALE of approximately 5.0 years11 by GRI.
Key tenants of the building include the Government of South Australia, law firms Minter Ellison and Lipman Karas and Jones Lang Lasalle.
The acquisition is expected to complete in the fourth quarter of 2019.
”Adelaide is the second most liquid CBD office market in Australia”
Australia has a growing and mature real estate market coupled with resilient economic fundamentals underpinned by positive drivers in its key markets. South Australia, where Adelaide is located in, is currently in the early stages of some of the largest infrastructure investments in the country, with billions of dollars being invested in defence, medical, road networks, technology and renewable energy that is expected to generate significant employment in the long term.
Adelaide is the second most liquid CBD office market in Australia between 2000 and 2018 and enjoys vacancy rates of less than 5% in comparable Grade A office towers located in Adelaide’s CBD.