CROMWELL Property Group (ASX:CMW) has capitalised on strong investor demand for commercial stock, after selling an office tower in Adelaide for $73 million.
A private investor purchased the asset at Waymouth Street in the biggest individual property transaction in South Australia this year.
The divestment represents a premium of 17.6 per cent over book value of $62.1 million, at a yield of 6.775 per cent.
Cromwell CEO Paul Weightman says the group will continue to look for opportunities in the market to improve its $2.1 billion portfolio of property assets.
"The current market provides us with a range of opportunities to rebalance our property portfolio and we will continue to actively manage the portfolio to deliver strong, stable, risk-adjusted returns for our investors," Weightman says.
Cromwell acquired the property in 2003, which houses Origin Energy on the commercial floors and Beyond Bank in the ground floor retail space.
Colliers International agents Paul van Reesema, Ian Thomas and Alistair Mackie negotiated the off-market sale to a Singaporean investor.
"This sale is the biggest transaction in the Adelaide market this year and represents a market-leading yield of 6.775 per cent," Reesema says.
"The capital value of $5,932 per sqm is also a record rate for a building of this kind in Adelaide.
"Located in Adelaide's vibrant west end business precinct, 100 Waymouth Street is surrounded by prestigious neighbouring buildings including Adelaide's tallest office tower, Westpac House, as well as News Corporation's head office at ANZ House, the new ATO Tower at EY House and The Rendezvous Hotel."
The sale is expected to settle on December 10.