German based financial services group SachsenFonds GmbH has returned to Adelaide’s office market for a second serving and the latest sale is only a slice of the $500 million pie on offer to the market.
Yesterday, market sources told Australian Property Journal that the Munich based syndicator SachsenFonds has set its sights on the recently completed ACCU House at 52-60 Light Square in the Adelaide CBD.
SachsenFonds has offered developer Tritan Corporation, which is headed by Luke Salagaras and Greg Molfetas, $32 million for the property, reflecting a yield of 6.25%.
The property is the headquarters to the Australian Central Credit Union.
The eight-level property comprises 7,500 sqm of space as well as car parking for 22 vehicles. ACCU moved into the property in May this year on a 10-year lease. The property is currently 87% occupied with ACCU representing 70% of the tenancy.
Market sources said the deal is yet to be sealed because ACCU has a first right of refusal to purchase the property.
Whilst a relatively newcomer to the Adelaide office market, SachsenFonds is leading the German dash into the sector.
The syndicator entered the market with the purchase the Flinders Link development in Flinders Street for $150 million after Babcock & Brown introduced it to the property. The Flinders Link development is being developed by Hindmarsh Group, Kambitsis Group and PT Building Services.
Meanwhile, earlier this week German superannuation fund Real I.S bought the recently completed office building at 151 Pirie Street $61 million from Charter Hall and project partners AMP and the Pivot Group.
Interstate investors have also shown appetite for the Adelaide market. Last month, the South Australian Police headquarters was purchased by Melbourne based company Shakespeare Management Pty Ltd – owned by Quek family, for $30 million.
According to Colliers International, Adelaide’s CBD transaction levels are at their highest on record.
Colliers International’s report said approximately $1 billion dollars worth of major office building transactions is expected to be transacted in the three years to mid 2007.
The report has identified $500 million dollars worth of sales over the past two years to date and $250 million are currently in negotiation and another $250 million is expected to go to market by mid 2007.
The rush of funds into the sector has also seen an increased in development activity. Adelaide development group Commercial and General has unveiled plans for a $200 million campus style office accommodation.
The development will comprise three buildings including one eight level and two 10-level office complexes.
The project is being developed on 8,000 sqm former Yorke Motors Mitsubishi dealership site on the corner of Angas and Pulteney Streets.
By Adam Parsons and Nelson Yap
