DEVELOPER SECURES CARPARK SITE FOR $25M
Written on the 26 October 2015
A CAR park operator and developer has fought off strong competition to acquire one of Adelaide's most significant investment and development opportunities in recent years.
The portfolio, comprising three bordering properties with a combined frontage of 56m to Frome Street, has been sold for $25 million. The buyer's identity has not been disclosed.
The 4157sqm site, located at 11-27 Frome Street and 12-18 Synagogue Place in Adelaide, were offered for sale as a whole or as three individual parcels.
The property, owned by the University of Adelaide, comprises a 498-bay multi-level car park over eight levels and thee older commercial and retail buildings.
"There was very competitive bidding from multiple purchasers local, national and Asian-based for this outstanding CBD opportunity," says Paul van Reesema, who marketed the property along with Colliers International colleagues Alistair Mackie and Ian Thomas.
"Given the superior location and flexible Capital City zoning, we expected these properties to attract interest from a wide range of investors and developers and we were not disappointed.
"The future potential of these sites is vast and as such we received interest from buyers interested in investment, development and value-add opportunities.
"The properties are situated in an unrivalled position in the absolute heart of the city's vibrant east end precinct, and offered substantial holding income potential."
The properties sit midway between North Terrace and Rundle Street on the western side of Frome Street and east of Synagogue Place.
Mackie says the immediate area had been the focus of extensive rejuvenation and development over the past decade and was set to continue with the state government's recent announcement of the Adelaide riverbank redevelopment and Festival Plaza project.
"Major infrastructure and developments in the area include the tram extensions along King William Street and North Terrace, the Convention Centre, the South Australian Medical Research Institute, the new Royal Adelaide Hospital, Adelaide Oval, North Terrace itself and Rundle Mall," he says.
"Given the Capital City zoning and its unrivalled East End location, the opportunities for major mixed use and residential development which might also incorporate the existing car park are both exciting and vast. It's hard to imagine a better site for this form of development."
The latest sale follows another hotly contested deal for a prime CBD multi-deck car park with development potential, the Union Street Car Park at 52-70 Frome Street, which sold for $27 million.