The sale of a fully refurbished office tower at 26 Flinders Street in Adelaide’s CBD has settled for $50 million, in one of the city’s most significant office transactions this year.
The 16-level building has been acquired by Exceed Capital in a new established single asset investment vehicle, FS Property Trust, following a successful capital raising campaign targeting wholesale investors.
The transaction was negotiated by Max Frohlich and Ryan Mills of Knight Frank in conjunction with Ian Thomas and Alistair Laycock of CBRE on behalf of the vendor, CorVal.
Total deals within the Adelaide CBD office market are now standing at approximately $370 million as liquidity returns to the market; significantly higher than the $157 million in sales for the 2025 calendar year.
The asset at 26 Flinders Street comprises 10,217sq m of net lettable area and 68 basement car spaces (one per 150sq m, among the most generous ratios in the CBD core) on a prominent CBD site overlooking Victoria Square, with a rear plaza offering further development potential.
The property is 91% occupied with a diverse tenancy profile including Aussie Broadband, Angas Securities, JCDecaux, Samsung Electronics, Stillwell Management Consultants, Employers Mutual and SeaLink.
The asset underwent a comprehensive $10.7 million refurbishment completed in 2025, incorporating upgrades to air-conditioning, BMS and fire systems, lifts, bathrooms, lobby areas and end-of-trip facilities.
Mr Frohlich said the sale reflected the depth of buyer demand for Adelaide, which continues to trade despite challenging national capital market conditions, underpinned by a strong Adelaide CBD occupier market.
“It’s positive to see new groups actively pursuing opportunities in Adelaide, with those groups particularly seeking well-located assets with strong underlying fundamentals and scope to create additional value over time,” he said.
“26 Flinders Street is an excellent example of the type of asset that is resonating with investors. We received bids from two groups backed by offshore capital and a private investor, alongside interstate syndicates and investment managers. It has already benefited from substantial capital investment, enjoys a diverse income stream across 24 tenants, and offers future development and placemaking opportunities that can further enhance its appeal.
“The purchaser recognised both the current income profile and the long-term growth prospects of the asset, particularly given Adelaide’s positive economic outlook and strong occupier market fundamentals.”
The acquisition is Exceed Capital’s second in Adelaide, with both purchases introduced by Knight Frank, and marks a major addition to its growing commercial property portfolio, with the group identifying Adelaide as a market offering attractive long-term investment opportunities.
Managing Director and Co-Founder of Exceed Capital Vaughan Hayne said the acquisition aligned with the group’s strategy of securing quality commercial assets with strong income fundamentals and long-term growth potential.
“We acquired 26 Flinders Street at approximately 50 per cent below replacement cost, following $10.7 million in recent capital improvements,” he said.
“Combined with its high occupancy and diverse tenant profile, it presented a compelling investment opportunity for our investors.”
Mr Thomas said the sale highlighted investor confidence in Adelaide’s office market and demand for high-quality assets.
“26 Flinders Street attracted significant interest throughout the campaign due to its combination of strong income, high-quality tenant profile, strategic CBD location and genuine upside opportunities,” he said.
“The transaction is another positive indicator of improving liquidity in the Adelaide office market, with investors increasingly recognising the value available relative to Australia’s eastern seaboard markets, together with the lowest transaction costs in the country.
“A key attraction was the building’s replacement-cost proposition. The asset transacted at a significant discount to the cost of delivering comparable new office stock today, while offering investors immediate income and exposure to rental growth.”
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