News & Discussion: CBD Real Estate & Market Conditions

[[Shuz]]

Disappointing to see that even with the success of the tram extension into the heart of the Adelaide CBD, that there are so many vacant shops along the southern end of King William Street. The location, street level exposure and public transport accessibility is better than most places. Wonder why? Exorbitant rents?

[monotonehell]

Disappointing to see that even with the success of the tram extension into the heart of the Adelaide CBD, that there are so many vacant shops along the southern end of King William Street. The location, street level exposure and public transport accessibility is better than most places. Wonder why? Exorbitant rents?

Are you sure this is true? The only ones vacant along there I can think of are two, plus a few that have been vacated due to refurbishment works about to commence.

[[Shuz]]

Disappointing to see that even with the success of the tram extension into the heart of the Adelaide CBD, that there are so many vacant shops along the southern end of King William Street. The location, street level exposure and public transport accessibility is better than most places. Wonder why? Exorbitant rents?

Are you sure this is true? The only ones vacant along there I can think of are two, plus a few that have been vacated due to refurbishment works about to commence.

The vacant shops/sites in question between City South and South Terrace tram stops are;

Former Berlin Wall shop next to the vietnamese cafe
Retail space in the Edge building
The Great Southern Rail office building
The former asian carpet/housewares store
Former Hills development site
399 KWS student accomodation site
Former lawyers cottages opposite 400KWS
Former AAMI insurance building
Retail shops next to Kutz on King
Corner building next to the new cafe opposite Kings Hotel

[Nathan]

Former AAMI insurance building

That's now the state hq for Fuji Xerox. So not vacant.

[cruel_world00]

It would be great to see the council/state government pull their finger out and fix the one stop that keeps the network looking complete. City South is a blight on that end of the city. Too bad if it rains or is stinking hot. The commuters waiting at this stop don't look particularly protected from the elements or traffic.

Hope they sort this out soon.

[Nathan]

It would be great to see the council/state government pull their finger out and fix the one stop that keeps the network looking complete. City South is a blight on that end of the city. Too bad if it rains or is stinking hot. The commuters waiting at this stop don't look particularly protected from the elements or traffic.

Hope they sort this out soon.

I completely agree. I used to live right near the stop and used it all the time, and it was horrible. Have they at least put a timetable up now, or still MIA?
I think it's been covered a few times previously on the forum, and the question has been put forward to the Lord Mayor on twitter a few times - it's an Adelaide Metro/state responsibility, not council's.

[Shahkar]

Funds pay $87m for city tower at 45 Pirie St, Adelaide

THE $87 million sale of a CBD office tower could signal the return of Australian institutional investors to the Adelaide property market, industry experts say.

Sydney-based fund manager CorVal has made its first foray into the Adelaide market, paying $87 million for the 45 Pirie St building on behalf of three institutional investors.

The Future Fund, Funds SA and Victorian Funds Management Corporation, groups for which CorVal was awarded an investment mandate late last year, will take on equal ownership stakes in the building.

CorVal director Ian O'Toole said the Adelaide office market offered a stable investment environment.

"Our plans are to manage the asset well, adopting a boutique hands-on approach to take advantage of the good platform that Colonial have laid," Mr O'Toole said.

"We will always be on the lookout so more (properties) in Adelaide is not out of the question."

Colonial's listed Commonwealth Property Office Fund (CPA) paid $55.2 million for the 18-level Pirie St building in 2002 and since 2008 has spent more than $11 million on upgrades.

CPA fund manager Charles Moore said the sale reflected a re-weighting of the fund's portfolio.

"It is a non-core holding in a market where we are overweight," he said.

"On the back of strong investor demand for office property, the timing was favourable for the divestment."

"The sale proceeds will initially be used to pay down debt, providing CPA with additional debt capacity which will allow future reinvestment."

Australian institutional investors have been divesting from the Adelaide office market since the onset of the global financial crisis.

But the latest transaction - the highest value property sale in Adelaide since Real I.S's $100 million acquisition of 400 King William St in October - will boost confidence in the Adelaide market, according to CBRE state managing director Phil Rundle.

"I think its good news that unlike a lot of major transactions in recent times, it's not a local purchaser or local syndicate but an interstate buyer," he said.

"We've noticed a lot more interest in recent months from interstate - syndicates and funds looking to Adelaide."

CPA's $2.3 billion fund is left with two office properties in Adelaide - City Central Tower 1 at Waymouth St and EDS Centre at 108 North Tce.

Colliers International and Knight Frank, the property firms that managed the off-market sale of 45 Pirie St, declined to comment.