A four-level office building at 151 South Terrace in Adelaide’s CBD fronting the city’s Southern Parklands has sold for $18.15 million, reflecting continued depth of demand for high-quality Adelaide CBD assets in the sub-$30 million investment segment.
The contemporary four-level office building was purchased by a local private investor from Curated Capital, with the transaction negotiated by Max Frohlich and Ryan Mills of Knight Frank.
Occupying a prominent 1,298sq m freehold site directly fronting Adelaide’s Southern Parklands, the building comprises 3,321sq m of net lettable area (NLA) across efficient, light-filled floorplates, complemented by a rooftop entertaining terrace with expansive parkland views.
Constructed in 1988, the asset has benefited from more than $4 million in capital expenditure since 2018, including new lifts, mechanical and fire services, modern amenities and first-generation fitouts. These works have positioned the building as a low‑capital‑expenditure proposition with strong sustainability credentials, underpinned by a 4.5‑star NABERS Energy rating.
The transaction also included 140 separately saleable strata-titled car parks at 11–23 Holland Street, delivering an exceptional parking ratio of one bay per 24sq m of NLA – one of the strongest provisions within the Adelaide CBD office market and a key point of differentiation in leasing appeal.
The asset is 100% leased to a diversified mix of high-calibre local and national SME and not‑for‑profit occupiers, including Relationships Australia, Barkuma Incorporated, MYOB Australia and DSM Investment Group. It produces a net income of approximately $1.3 million per annum, is held on a 4.5‑year WALE (by income) and transacted at an initial yield of 6.7%.
Mr Frohlich said investor demand for the asset was broad-based, spanning both local and national private capital and syndicators, highlighting the strength of Adelaide’s defensive office offerings.
“Investors were drawn to the fundamentals of the asset, which united income security with compelling growth prospects, including a clear runway to positive rental reversion and value enhancement initiatives,” he said.
“151 South Terrace’s absolute park front position, together with its sustainability credentials, long-standing occupiers and low capital expenditure outlook, offers investors a secure, future-focused platform with a perfect combination of defensiveness and embedded upside.”
Mr Frohlich added that Adelaide’s strengthening office market continues to underpin investor confidence.
“Backed by Adelaide’s strengthening office market, characterised by positive net absorption, rising effective rents and a limited future supply pipeline, the asset is positioned to capture ongoing rental growth.”
The property also offers value‑add initiatives includingenhancement of the rooftop terrace, introduction of end-of-trip facilities and further ESG improvements such as solar integration.
Mr Mills said the location of 151 South Terrace, overlooking Adelaide’s Southern Parklands with exceptional amenity in the immediate vicinity combined with outstanding connectivity.
“The building offers an unobstructed outlook over Adelaide Parklands, and is directly adjacent South Terrace Tram Stop and bike path offering direct connectivity to the centre of the Adelaide CBD core, Central Market and Adelaide’s legal precinct,” he said.
“South Australia continues to attract growing investor attention due to its relative affordability and strong growth prospects, with strong industry underpinning the economy and property markets.
“There is currently more than $100 billion in projects in the pipeline across defence, space, technology and renewables in the state.
“The sub-$30 million market remains the most liquid segment nationally, and Adelaide continues to offer more stable capital values relative to the eastern capitals.”
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