The South Australian Police headquarters in the Adelaide CBD has being sold for approximately $30 million, on a yield of 10%.
Australian Property Journal has learnt that the deal is on the verge of being settled.
The SAPOL building is located at 30 Flinders Street and has being sold by David Coe, the executive chairman of global finance services group Allco – which had no involvement with the transaction.
Coe’s Henabond Pty Ltd bought the 10-level in 1998 for $22.1 million. The South Australian Government previously owned the 13,954-sqm building.
SAPOL agreed to lease the building for 10-year lease and its lease expired in February this year. SAPOL then exercised a four-year lease option, which will extend the lease expiry to February 2012. The property boasts an income of $3.2 million per annum.
The property is believed to have being purchased by Melbourne based company Shakespeare Management Pty Ltd – owned by Quek family.
This transaction is expected to kick off a swag of deals in the Adelaide commercial investment market.
It is believed that German financial services group and Munich based SachsenFonds GmbH is on the throws of purchasing the Flinders Link development in Flinders Street, for $150 million.
The Flinders Link development is being developed by Hindmarsh Group, Kambitsis Group and PT Building Services and due to be sold to Record Realty.
However, in April this year, Record Realty withdrew from negotiations to buy Flinders Link development in Flinders Street for $130 million citing “outstanding issues”.
Other properties due to change hands include Caversham’s City Central Tower 2 with an asking price of about $36 million; the Pivot Group, Charter Hall and AMP Capital Investors’ 151 Pirie Street building for about $60 million; and the new Ernst & young anchored property at 121 King William Street.
The Adelaide investment market has witnessed a steady stream of sales in the past quarter, including Charter Hall’s packaged purchase of the St George Bank headquarters in Adelaide together with a Sydney property for $146 million.
In addition, Adelaide’s landmark 55 Currie Street was finally sold to Aspen Group for $66.98 million after WRF Property Limited shelved the purchase.
By Adam Parsons and Nelson Yap
