Colliers International lists landmark CBD development site for expressions of interest
Adelaide’s Wakefield Hospital and Clinic has been welcomed to the market, marking one of the most significant and multifaceted repositioning and redevelopment opportunities in the CBD in recent times.
The 8,712sqm landmark site at 264-300 Wakefield Street and its associated properties, an Ifould Street car park and adjoining bluestone villa, are expected to fetch $45million-plus in one line or up to four separate parcels.
Colliers International’s Paul Van Reesema, Justin Hazell, Alistair Mackie and John Marasco have been appointed to sell the property, anticipating interest from the medical, healthcare and retirement sectors, and residential, retail and mixed-use developers and investors.
Mr Van Reesema said the site provided substantial reconfiguration and redevelopment upside for ongoing and complementary use due to its versatile Capital City zoning.
“The property’s premier location, sheer magnitude, multiple street frontages, parcelling options, high-quality and adaptable buildings, and favourable zoning combine to make this a truly exceptional opportunity,” he said.
“It marks one of South Australia’s most outstanding opportunities to secure a strategically placed asset, superbly located within the coveted eastern precinct of Adelaide’s CBD.”
The site encompasses nine freehold titles with street frontages to Wakefield, Hutt, Daly, Ifould and Flinders streets. The primary island site accommodates the hospital and clinic, while an adjacent parcel comprises the open-lot car park and bluestone villa.
“The eastern half of the main site comprises a high-quality four-storey contemporary medical clinic and basement carpark, which has been built in stages between 1990 and the early 2000s,” Mr Mackie said.
“It offers exceptional value for ongoing existing or similar uses.”
Mr Mackie said the property offered significant holding income, with repositioning potential due to the lessee’s expected vacation of the property at the expiry of the current lease term.
“With the exception of the bluestone villa, all properties are currently leased to Calvary Health Care until at least mid-July 2019,” he said.
“A variety of specialist medical practitioners, general practitioners, medical imaging, clinical and allied health professionals currently occupy parts of the clinic improvements under subleases.”
Mr Hazell said Adelaide was experiencing unprecedented demand for medical assets, largely driven by population demographics and the non-discretionary nature of the sector, as well as investor and owner-occupier appetite.
“The locality forms part of a well-established mixed-use precinct encompassing numerous medical centres, specialist practitioners, clinics and premium apartments, creating the opportunity for ongoing healthcare use and residentially focussed mixed-use redevelopment outcomes,” he said.
Mr Van Reesema said the flexible zoning presented a diverse range of possible land uses, including residential apartments, aged care, vertical retirement, retail, medi-hotel, hotel and serviced apartments.
“Adelaide has enjoyed a strong residential development market throughout the past five years,” he said.
“High-rise apartment development is rapidly emerging, particularly in premium locations that are well suited for owner-occupiers such as this,” he said.
“The site has a prescribed height limit of up to 53 metres and planning advice indicating the potential for up to 67 metres, with appropriate setbacks from Hutt Street.”
Mr Hazell said that vertical living environments were another emerging trend, with South Australia’s ageing population and empty-nesters increasingly looking at contemporary retirement village models.
“There is evolving interest in multifaceted vertical retirement living and healthcare communities that offer residents the continuum of care,” he said.
Expressions of interest close on Thursday, October 19 at 4pm.