Starmaker 888 Pty Ltd, which has owned 76 Waymouth Street since 1990, has appointed Cushman & Wakefield’s Anton Williams and Jack Dascombe to sell the eight-level office tower via Expressions of Interest.
The property is currently 57.4 per cent occupied, creating a significant repositioning opportunity for an incoming owner through active leasing, refurbishment and the potential repositioning of vacant floors.
Cushman & Wakefield Director, Investment Sales SA, Anton Williams said the campaign was expected to appeal to investors actively seeking opportunities to create value rather than compete solely for fully leased assets.
“There is a growing pool of capital looking beyond traditional passive investments and towards office assets where there is a genuine opportunity to manufacture value.
“We expect interest from private investors, family offices, syndicators and value-add groups that are comfortable implementing an active leasing and refurbishment strategy. The asset provides an accessible entry point into the Adelaide CBD with considerable upside if that strategy is successfully executed.
“Investors are becoming increasingly confident about taking on leasing risk where the location and underlying real estate are strong, particularly when they can see a clear pathway to improving the asset and its income profile” he said.
The building provides 2,979 sqm* of net lettable area on a 599 sqm* Capital City-zoned site, with typical floorplates ranging from 346 sqm* to 508 sqm*.
Its existing vacancy is concentrated across the ground, first and second floors, providing up to 1,264 sqm* of contiguous space. The accommodation includes a street-level café with commercial kitchen, 9B-certified office space and a warm-shell whole floor with LED lighting and a private 175 sqm* open-air terrace.
Cushman & Wakefield Senior Executive, Investment Sales SA, Jack Dascombe said the building’s configuration provided an incoming owner with several avenues to reposition the property.
“The opportunity here is the flexibility of the asset. Rather than dealing with fragmented vacancy throughout the building, the available space is concentrated across three contiguous lower levels, giving a purchaser a meaningful area to refurbish, reposition and take back to the leasing market.
“The existing mix of office, education and ground-floor food and beverage accommodation also demonstrates the versatility of the building, while the Capital City zoning provides further flexibility over the longer term.
“Combined with its position in the western CBD, close to major corporate and government occupiers, public transport, hospitality and retail amenity, we think it provides a strong platform for an investor prepared to actively manage the asset” he said.
The property is occupied by tenants spanning education, engineering, recruitment and telecommunications, including Kentford College, Gradability, Pivot Training, AIM Education and Training, SEI and Optus.
The campaign comes as Adelaide’s CBD benefits from a substantial pipeline of government, defence and infrastructure investment, which is supporting employment and longer-term demand for commercial accommodation.
76 Waymouth Street, Adelaide is being offered for sale via Expressions of Interest closing 7 October at 3pm.
