Mawson Lakes office building transaction complete

12 December 2023

A significant campus style office asset fully leased to Lockheed Martin Australia has sold off-market for $28.2 million in a show of confidence in the Adelaide market.

The three-level building at 5-10 Third Avenue in Mawson Lakes, within Technology Park, Adelaide, was purchased by the GDA Diversified Property Trust from a Melbourne based private syndicate.

The asset provides a net lettable area of approximately 5,358sq m on a 3.312ha site and is home to approximately 350 staff.

Knight Frank agent Max Frohlich introduced GDA to the vendor, with the sale transaction an off- market deal.

5-10 Third Avenue comprises a three-level office building positioned centrally on an ‘L’ shaped allotment with at-grade car parking provisions for around 550 vehicles positioned on both sides of the building.

The building has floorplates divided into two wings, with open plan office areas positioned to either end of the building with reception, common areas, lifts, amenities and plant rooms located centrally in the junction.

The asset, which was originally completed in 1998, was substantially upgraded by Lockheed Martin in 2018.

The facility has low site coverage of less than 10 per cent with significant room for further expansion of the building if required.

As a freestanding building, it offers Lockheed Martin the ability to secure the building from the public to a level required by the federal government.

Knight Frank Director, Head of Institutional Sales, SA Max Frohlich said South Australia had a rich defence history, dating back to its involvement in the defence of the nation during World War II.

“The state has a significant and long-standing defence industry presence, playing a crucial role in Australia’s defence capabilities by delivering many of the country’s largest and most complex defence projects,” he said.

“South Australia’s defence programs benefit from a highly connected and coordinated defence and space ecosystem located in high technology precincts and industry clusters like Technology Park at Mawson Lakes.”

Technology Park is a world class business community of innovative, high-tech organisations. Anchored by global companies such as BAE Systems, Ultra Electronics, Codan Limited, Kongsberg, Saab Technologies, Ellex Lasers, and Raytheon Australia, Technology Park is now home to over 100 companies including Lockheed Martin.

Technology Park has also gone from strength-to-strength with examples of this including Sabb committing to a $80 million defence expansion including a manufacturing and education hub and Kongsberg Defence Australia expanding their operations with a new, $15 million investment in a purpose-built facility under construction.

Mr. Frohlich said Lockheed Martin Australia’s SA operations made up the largest share of its Australian workforce at around 40 per cent.

“The calibre of Lockheed Martin as a tenant and strategic nature of the Technology Park precinct were both key considerations of the incoming purchaser, GDA,” he said.

“The recent announcement that Lockheed Martin Australia has been selected as the Australian Defence Force’s trusted, long-term sovereign partner for AIR6500 – a program that will provide the Australian Defence Force with a Joint Air Battle Management System for the future Integrated Air and Missile Defence capability – has only bolstered Lockheed Martin Australia’s blue-chip credentials.

“This is a significant sale for Adelaide and follows the recent announcement of the Department of Defence’s acquisition of 620 Mersey Road, Osborne from Australian Unity for $46.75 million – further demonstrating the federal governments commitment to defence investment in South Australia.

“This transaction brings total office transactions above $10 million for the 2023 calendar year to $307.45 million in Adelaide including one unconditional exchange, however with only 33 percent of these sales (by value) occurring in H2.”