Adelaide’s most prestigious and iconic office tower, Westpac House, is on the market in the city’s biggest CBD investment opportunity in recent years.
Colliers International’s Ian Thomas in conjunction with Knight Frank’s Guy Bennett and CBRE’s Philip Rundle, have been appointed to sell the 31-level building at 91 King William Street in the heart of the Adelaide CBD.
Mr Thomas said Westpac House was the most iconic and recognisable building on the Adelaide skyline.
“Westpac House is Adelaide’s most prestigious office tower and dominates the CBD skyline,” he said. “The tower building is one of only two premium grade properties in the Adelaide CBD and houses an outstanding list of blue chip, corporate and private sector tenants with 31 levels of accommodation.
“Westpac House is on par with commercial property investments across Australia. Its ability to attract a ‘who’s who’ of tenants, and maintain itself ahead of the competition, augurs well for investors considering a long term investment horizon."
Mr Bennett said Adelaide’s property market was regarded as an international ‘safe haven’ and a major benefactor of the continued growth in China, Southeast Asia and India.
“Demand for quality Adelaide CBD investment assets remains strong, with a diverse range of investors in the market looking to secure investments,” he said. “91 King William Street is the ultimate trophy asset in Adelaide and this, combined with growing demand for prime quality assets, will see a hot contest among a wide range of buyers keen to secure this outstanding property."
The Westpac House development encompasses three buildings together with a large plaza and various pedestrian thoroughfares. Dominating the site is the tower, a 31 level high rise premium grade office building including basement car parking and service areas.
Mr Rundle said Westpac House incorporated one of the finest modern landmark office towers in Australia which, together with the two adjacent buildings – Delmont Building and Perpetual Building – provided a total net lettable area of 31,678.3sqm.
“Strategically situated with three street frontages, the property enjoys one of the most important and high profile positions in the centre of the Adelaide CBD surrounded by banking, institutional and high profile public and private buildings and tenancies,” Mr Rundle said.
“Westpac House has enjoyed excellent rental growth, very high occupancy levels, and strong tenant retention since it was built.
“The building’s timeless design, flexible and relatively large floor plates, impressive services and expansive views set the building standard for the Adelaide CBD. This building provides astute investors with a rare and timely investment opportunity."
The 4,287sqm site area incorporates 29,746.2sqm at Westpac House, along with 868.5sqm at Perpetual House (89 King William Street) and 236sqm of storage space at Delmont House (16 Angster Street). It also offers 60 car spaces.
“Situated on the western side of King William Street, Westpac House is the focal point of the Adelaide CBD,” Mr Bennett said. “Rental income is supported by a staggered lease expiry profile and the best blue chip tenancy mix in the city, with high profile tenants including Westpac, AECOM, Seek, the South Australian Government, Servcorp Australia, Knight Frank, Equity and Advisory, Emirates, HWL Ebsworth Lawyers and AON."
Mr Bennett said Westpac House offered an excellent opportunity for capital and rental growth, a high and sustainable cash flow, rare and exclusive panoramic views over Adelaide and a desirable King William Street business address with access from Currie and Waymouth Streets. It was also close to the popular Rundle Mall retail precinct and Victoria Square legal precinct.
“It is also one of only a few buildings nationally that has been re-branded three times, successfully,” he said. “The property still has repositioning and value add opportunities for potential purchasers via lobby refurbishment, leasing, and improving the NABERS Energy efficiency."
Mr Thomas said Westpac House would be highly sought after in an increasingly popular investment market.
“Competition for Adelaide CBD investments has strengthened in 2015 due to demand from institutional investors who are in acquisition phase, together with a more active private investor market,” Mr Thomas said. “Large domestic and offshore institutions are also in the market looking for prime quality assets with a preference for long lease terms to secure tenants.
“Adelaide’s property market, particularly the office sector, is experiencing increased demand as investors look for appealing yields and an alternative to the stock market. For investors, Adelaide offers more attractive yields than the eastern seaboard property markets.”