Colliers International sells West Terrace office building for $2.85million
A two-level office building on the western fringe of Adelaide’s CBD has sold for $2.85million, following a highly competitive expressions-of-interest campaign.
Colliers International’s Paul van Reesema and Alistair Mackie brokered the deal for 193 West Terrace at a rate of about $4,228.50 per sqm of building area, about 30 per cent above the vendor’s expectations.
Mr van Reesema said the strong result highlighted the renewed demand for investment assets in Adelaide’s CBD.
“The campaign generated more than 40 enquiries, with four parties fighting it out through the first- and second-round bidding process,” he said.
“The sale price reflects a land value of $3,650 per sqm, made even more valuable by the City Frame zoning which provides for development up to 36 metres in height.”
Mr Mackie said the buyer also recognised the value in the tenant income, particularly the rooftop sign, which is leased to Ooh! Media for five years from May 1, 2015, at $42,000 per annum, plus turn-over rent.
Collaroy Management Services and CRW Consulting Engineers lease the ground floor, while Merchant Accounting Partners lease the first floor.
“The 674sqm building occupies a site area of 780sqm and enjoys substantial frontage and exposure to West Terrace of 24.4 metres,” Mr Mackie said.