CBD Building Sells With Development Upside

A CBD building with development upside overlooking Light Square has sold for $4.285m in a campaign managed by LJ Hooker Commercial Adelaide.

The sale campaign attracted a considerable amount of interstate interest from investors who are seeking better value redevelopment sites.

While 147-149 Waymouth Street offers holding income – it traded on a passing yield of 3.45% - the majority of enquirers were interested in the redevelopment potential of the CBD location with the 520sqm site able to deliver 15 levels, subject to council approval.

Across the 520sqm site, the sale represented $8,240psm.

The campaign was managed by LJ Hooker Commercial Adelaide’s Mark Tettis, Stan Tettis and Kofi Adih.

It was the first time the office building has changed hands since 2008.

Despite the issues plaguing the construction sector, there was still interest in securing redevelopment opportunities for longer term strategies, said Mark Tettis.

“The purchaser was from Sydney and we had a large amount of other enquiries from interstate as well,” said Mr Tettis.

“The feedback we've received on this sale and others is that Adelaide remains cheap compared to the eastern capitals. That’s adding to competition for local sites.”