An Adelaide office building has changed hands for $47.2 million in what is the first major CBD office investment transaction completed in the city since the onset of COVID-19.

The off-market sale of the property known as NAB House at 22-28 King William Street was negotiated by Oliver Totani, Guy Bennett and Rory Dyus of Knight Frank.

It was purchased by Intergen Property Group on behalf of a Singaporean family from Southern Cross Equity Group Pty Ltd.

At a glance: 

• NAB House at 22-28 King William Street has sold for $47.2 million in a deal negotiated by Knight Frank's Oliver Totani, Guy Bennett and Rory Dyus 
• It was purchased by Intergen Property Group on behalf of a Singaporean family office from Southern Cross Equity Group Pty Ltd
• The deal was the first major CBD office investment transaction completed since the onset of COVID-19 in Adelaide.

The 14-level B-grade office building comprises 9,640 square metres of net lettable area spread over the basement, ground, mezzanine levels, as well as the upper 11 floors, with high valued retail space facing King William Street.

The property is home to NAB, with the financial institution occupying over 60 per cent, with the State Government and a mix of high quality corporate tenants making up the balance.

It was exchanged with a WALE of three years and showing a core market yield of 6.75 per cent.

Source: Knight Frank

Mr Totani said the sale of 22-28 King William Street was another example of the robust South Australian office market.

“We don’t have the great peaks, nor the troughs – rather there is general stability,” he said.

“In times like this, where there is a global pandemic and uncertainty it’s worth its weight in gold.

“There are concerns with regards to the demand for office space moving forward, but we believe that Adelaide, given it doesn’t have the supply side pressures, is likely to be one of the better performers during this time of market dislocation.

“Whenever you have big market disruption there is always opportunity.

So given South Australia’s super response to the health crisis and the relative good news around the broader local economy, our property
market is likely to beneficiary moving forward. It might just be our time to shine.”

Mr Bennett said the sale of 22 King William Street further demonstrates Adelaide’s resilience and ability to trade through all cycles.

“Quality assets are always sought after by investors looking for strategic opportunities,” he said.

“King William Street is a prestigious Adelaide CBD address, being on the city’s premier boulevard.

“Its high profile position is a short distance to the transforming Riverbank Precinct development, the new Adelaide Oval, brand new Casino and Hotel development and Australia’s fast-growing biomedical precinct anchored by the recently built Royal Adelaide Hospital.

“The building is also within metres of Adelaide’s best retail precinct Rundle Mall and the best of the city’s thriving small bar and restaurant scene located within Leigh and Peel Streets.

“The high profile location is set to become the ‘new CBD’ as its direct locale is to be transformed by Charter Halls $200m office and retail development being metres from 22 King William Street.”

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