Value-add office building with lease to Westpac offered

Adelaide, 26 February 2024 – Agents JLL and Leedwell have been appointed to sell an office building leased to Westpac in Adelaide offering the potential for significant future repositioning and/or development potential (subject to necessary approvals).

Situated at 1 Hugh Cairns Avenue, Bedford Park, the property offers a fully leased modern campus style office with a secure lease to ASX-listed Westpac subsidiary BT Financial Group

JLL’s Managing Director and Head of Capital Markets South Australia Ben Parkinson said “This prestigious property showcases significant potential for future repositioning or development with a building area of 6,224 sqm on a site of 28,500 sqm.” 

“The location is key as it is in close proximity to the Flinders Medical Centre and Flinders University which opens up a multitude of living and commercial development options for the future,” he said.

Offering a core building area of approximately 5,874 sqm* across two levels, along with an additional 350 sqm standalone childcare facility sub-leased by Westpac to and operated by Goodstart Early Learning and 409 on-site car parks.

The Westpac lease offers a robust income stream with a passing net income of $1.88* million pa on a net basis, with the lessee responsible for all outgoings, including Land Tax, until 1 October 2025 with an additional five-year option to renew.

Leedwell Partner Jamie Guerra said, “The property is strategically positioned for purchasers to capitalise on the area's extensive transport infrastructure, including the North-South Corridor Darlington to Torrensville Upgrade Project, the Flinders Link rail line, and the Tonsley Innovation District.”

He said the land is Zoned Strategical Innovation, which allows for intensive development with a maximum height limit of 10 levels over most of the site.

JLL Director Capital Markets – South Australia Jack O’Leary said the flexible zoning allows for a range of uses such as high-density residential and student accommodation.

“The age and quality of the improvements also provides an opportunity for adaptive re-use, which could incorporate aged care, medical or education uses while also potentially expanding the childcare centre offering,” he said

Mr O’Leary said, "The investment provides the flexibility to enjoy substantial income while undertaking further value-add through the use of the existing improvements or redevelopment, taking advantage of the 10-level height limit (STNC).”

JLL and Leedwell are currently accepting expressions of interest for the sale of 1 Hugh Cairns Avenue, with the EOI closing Thursday, March 28 at 4 pm ACDT.