GDI takes to Adelaide's King William St

SYDNEY's GDI Property Group has bought an office building at Adelaide's King William Street.

The latest purchase at 108 King William St will be owned by the GDI No. 27 Total Return Fund.

This is the third and final property for GDI No 27 Total Return Fund, rounding out the investment strategy for this fund. The fund currently has two properties in Canberra and Burnie.

GDI’s executive chairman Tony Veale Adelaide is poised for a period of substantial economic growth with a $1 billion upgrade to Adelaide Hospital, and a $6 billion defence contract.

“The local mining industry is also experiencing significant growth, and these factors combine to instil investor confidence and expansion in Adelaide economy.

“Additionally low vacancy rates in Perth and Brisbane mean a number of businesses may be considering relocating their back-office services to Adelaide, where the cost of office space is much lower,” he added.

108 King William Street fits the profile for the final acquisition for the No. 27 Fund perfectly.

Built in 1970s, the building is in need of internal re-imaging to bring it up to 2007 standards. The building provides ground floor retail and twelve upper office levels totaling 6683 sqm of floor space.

During the 6 month settlement period GDI will be able to lodge strata applications and get access for the re-imaging work, renovation of two floors has already commenced.

In order to complete the sale of 108 King William Street the No. 27 Fund will raise $6 million from investors. On completion of the capital raising the fund will close.

Earlier this week, GDI and Fortius Funds Management jointly purchased an office property at 1 Adelaide Terrace in Perth, Western Australia for $87 million.

Australian Property Journal