One of the most recognisable buildings in the heart of Adelaide, Riverside Centre, is expected to attract eagle-eyed investors from across the country and offshore in the vicinity of $180million.
Colliers’ Paul Van-Reesema, Alistair Mackie, Adam Woodward and James Mitchell, in conjunction with CBRE’s Alistair Laycock, Ian Thomas, Stuart McCann and Hugh Thomson, have been appointed to sell Riverside Centre at 115 North Terrace in Adelaide by International Expressions of Interest closing 4pm on April 20.
“Riverside Centre is a superior investment which will appeal to high end investors across Australia and offshore markets,” Mr Van-Reesema said.
“The asset offers an absolutely blue-chip AA-plus and AAA-rated cash flow and a long 8.5 year WALE underpinned by enviable leases to the Government of South Australia and the Commonwealth Government.
“In addition to very attractive existing investment metrics, Riverside Centre has been extensively upgraded in 2009 and an additional $24million in 2020 providing minimum CAPEX exposure to an incoming owner.”
Riverside Centre comprises an A-Grade office tower of 22,691sqm over 10 levels, plus a basement providing access to the Convention Centre carpark below. In addition, there is a free-standing office/retail tenancy in the adjoining hotel forecourt plaza fronting North Terrace of 203sqm. The building has a 5-star NABERS rating.
Constructed in 1989 as part of the ASER project, Riverside Centre sits on the ASER plaza, which is partially suspended over the railway platforms and tracks. The ASER project was a master planned precinct development involving the redevelopment of the Adelaide Railway Station to incorporate the Adelaide Casino, and the then new Hyatt Hotel, Adelaide Convention Centre, Riverside Centre and the Convention Centre Carpark which sits below the ASER plaza.
The building is designed as four interconnecting octagonal pods around a central atrium and lift core with a feature glass dome roof flooding the accommodation with natural light.
Riverside Centre was constructed to stringent State Government design standards and had been meticulously maintained and upgraded by the current owners and prior institutional owners to ensure the building remains ahead of current and future requirements of both Commonwealth and State Government departments as well as major corporate occupiers.
“Riverside Centre has gone through substantial refurbishments in recent years, around 2009 at a cost of $6.5million and again during 2020 as part of the new lease commitment from the State Government,” Mr Laycock said.
“As a result of the State Government committing to a new 10-year lease, the owners have just completed an extensive further upgrade of the building at a cost of around $10million and an additional $14million in tenancy fitouts.”
Mr Van-Reesema said Riverside Centre was strategically located on North Terrace at the epicentre of Adelaide’s burgeoning Riverbank Precinct.
“Riverside Centre is perfectly located to take advantage of the fastest-growing business, transport, and entertainment precinct in the Adelaide CBD – neighboured by the city’s biomedical and innovation hubs – where $6billion of development is in the pipeline in one prime corridor,” he said.
“The Adelaide City Council recognised the importance of activating the western side of the CBD with a particular focus on the laneways linking Adelaide Oval, North Terrace and the Railway Station to the Central Markets, Victoria Square and the Courts precincts. This was in addition to the activation and connection of the exceptional small bar, eatery and entertainment offering through Bank, Peel and Leigh Streets.
“Anchored at the western end by the BioMed Precinct and at the eastern end with the redevelopment of Lot Fourteen as an innovation and entrepreneur precinct and home of the Australian Space Agency, Riverside Centre is at the very heart of this activity.”
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