The Sturt Centre, an office building in South Australia’s Murray Bridge, has sold for $7.5 million following a competitive sales campaign highlighting strong investor demand for government-backed regional assets.
The property at 2 Sturt Reserve Road, 78 kilometres southeast of Adelaide, comprises a modern two-level office building with 2,151sq m of net lettable area across seven tenancies on a prominent 5,254sq m corner site.
Extensively refurbished in 2010, the asset is anchored predominantly by government and government-funded tenants including Landscape South Australia Murraylands and Riverland, the Women’s & Children’s Health Network and the Australian Electoral Commission.
The property was purchased by a South Australian private investor in a transaction negotiated by Knight Frank’s Harrison Grice in conjunction with Raine & Horne Murraylands’ John DeMichele on behalf of the vendor, Ninox Capital.
The sale reflected a passing yield of approximately 8.65% gross, inclusive of a two-year rental guarantee worth $180,000 per annum, and an underlying net yield of approximately 6.25% following the guarantee period.
Mr Grice said the property’s combination of secure income and future upside resonated strongly with buyers.
“Investors remain attracted to assets offering a reliable income stream supported by strong covenant strength, particularly where there is a clear opportunity to enhance value over time,” he said.
“The Sturt Centre is underpinned by a predominantly government-based tenant profile, providing secure cash flow in one of South Australia’s fastest-growing regional centres.
“The two-year rental guarantee provided the purchaser with income certainty while they execute a leasing strategy to further improve occupancy and rental performance.
“A WALE of circa two years also presented an active management opportunity, with scope to re-lease and reposition tenancies as they expire.”
Mr DeMichele said the campaign demonstrated ongoing appetite for regional investment opportunities backed by government income.
“We are seeing solid demand for quality investment opportunities in regional areas, particularly those experiencing strong growth,” he said.
“Murray Bridge continues to benefit from significant population growth, major infrastructure investment and large-scale development projects, reinforcing its position as one of South Australia’s most important regional centres.
“It is forecast to become South Australia’s largest regional city, with a 50 per cent population increase expected by 2041.”
Murray Bridge is undergoing a wave of development activity, including the $7.5 billion Gifford Hill satellite city project, which will ultimately deliver over 17,000 new homes. Gifford Hill will be the largest single development in South Australia since the 1950s.
Adding to the region’s appeal is Monarto Safari Park – the largest safari experience outside of Africa – which attracts significant annual visitation and continues to expand as a major tourism and economic driver for the area.
With connectivity via the Princes Highway, key freight routes, and passenger rail to Adelaide and Melbourne, Murray Bridge is well positioned to benefit from population decentralisation and strategic investment in regional infrastructure.
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