Credit Suisse to sell Grenfell Centre

Domestic and foreign investment activity in the last nine months has picked up in Adelaide following the abolishment of stamp duty on commercial properties.

 

Recent sales at 121 King William and 77 Grenfell St have tempted Credit Suisse to offload its core asset at 25 Grenfell Street which has attracted strong interest from a range of buyers.

 

Singapore’s Soilbuild REIT is the front runner on the asset at a price $150 million, reflecting a 5.8% passing yield and a 7.5% yield on a fully let basis.

 

The A Grade office tower provide 25,131sqm of NLA, leased to 10 tenants providing a weighted average lease expiry of 3.9years.

 

The property currently has circa 5,300sqm of vacant space which is proving difficult to shift in a market which currently has a 14.2% vacancy factor. The property currently generates approx $8.8M and when fully leased would offer circa $11.2m per annum.

 

Credit Sussie acquired the asset in 2016 for $125M and undertook minor refurbishment works to improve end of trip facilities and bathroom amenities.

 

The Singapore Soilbuild REIT made its first 2 investments in Australia in September 2018, acquiring off Ascot Capital, 14 Mort Street Canberra for $55M and 1122 Wakefield Rd, Burton for $61M.

 

Soilbuild have not commented on the acquisition of 25 Grenfell Street.