Significant site sold in Adelaide’s inner eastern suburb of Kent Town

A significant site with functional improvements, holding income and strong development potential has been sold for a combined total $7.25 million in Adelaide’s tightly held inner suburb of Kent Town.

The property at 125-131 Rundle Street, Kent Town was sold by JLL’s Head of Capital Markets, Ben Parkinson, Director of Sales and Investments Jack O’Leary and Senior Sales Executive Claudia Brace.

The property is comprised across two titles and was offered “in one line” or individually. The asset sold to two owner occupiers who intend to occupy the property and appreciate the long term development potential of the property and the precinct. The sale presented blended rate of over $3,700 sqm of site area.

Mr. O’Leary said the property received immense interest with over 120 enquiries from developers and land bankers to owner occupiers and investors.

“The property provided 1,938 sqm of prime site area in the sought after and continually evolving CBD fringe suburb of Kent Town, located just over 1 kilometre east of the amenity of the Adelaide CBD and a short walk to The Parade, Norwood,” he said.

The property comprises two Certificates of Title with a functional office and workshop on one title and a separate warehouse on the other with a total building area of more than 1,300 sqm. The property also benefitted from 40.24 metre dual street frontages to both Rundle Street and Little Rundle Street.

Mr. O’Leary said: “Sites of this scale, location and amenity are highly sought after and provide an exceptional opportunity for development now or into the future.”

He said the property is zoned Urban Corridor (Main Street) with the potential to develop up to 5 levels, subject to approvals.

A portion of the building is leased to the end of 2024 with further monthly occupiers providing attractive holding income, providing ultimate flexibility.

JLL Senior Executive Claudia Brace added that the site is poised for continued capital growth with a number of excellent residential developments in the area and would benefit from South Australia’s strong annual population growth.

“Kent Town continues to evolve and is home to a mix of uses including medium density residential, medical, boutique commercial, retail, restaurants and cafes providing unparalleled access to amenity,” Mrs. Brace said.