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Centuria tops out boutique Adelaide office development

Completion well-timed for returning workforce

  • $42 million six storey, 4,600 sqm A-Grade boutique office building in the heart of Adelaide’s CBD tops out
  • Development on target for early 2023 completion; as Adelaide’s workforce hits 71% occupancy1
  • c.55% pre-leased; strong demand for new generation Prime office buildings in the SA Capital2
  • Sustainable features target a 5 Star Green Star Rating and a 5.5 Star NABERS Energy Rating.

The development division within the ASX-200 listed Centuria Capital Group (ASX:CNI, “Centuria”), has reached a significant milestone with the topping out of its boutique $42 million A-Grade office building in the heart of Adelaide’s CBD.

The six storey, 4,600sqm office asset is on schedule to open in early 2023. Already c.55% of the building is preleased and strong market tailwinds provide further leasing confidence with the Property Council of Australia recently reporting Adelaide’s CBD as having the highest occupancy rate in the nation, jumping to 71% in August1.

The asset, located at 57 Wyatt Street, is being developed by Centuria. However, the pure play listed office fund, Centuria Office REIT (ASX:COF), will take ownership on completion. It will be the REIT’s second property within South Australia and part of its $2.3 billion portfolio.

Across the Centuria Group, the real estate funds manager has a seven asset South Australia office portfolio worth $525 million. The Wyatt Street site adjoins the Group’s 80 Flinders Street office building and carpark.

Grant Nichols, Centuria Head of Office and COF Fund Manager, said, “Centuria has strong conviction in the prime Adelaide CBD market and the pre-leasing commitments at our Wyatt Street development is reflective of our confidence. It is encouraging to see Adelaide’s workforce strongly returning to the office, leading the nation. This trendsetting behaviour is mirrored by a flight to quality, as there is strong demand for high quality, new generation office buildings in Adelaide2.”

Andre Bali, Centuria Head of Development, added, “We were able to structure and deliver this unique off-market transaction with Hindmarsh, who is a long standing partner of Centuria, and back the South Australian commercial office market. Our development team has extensive experience in delivering fit-for-purpose, high quality, sustainable office accommodation suited to the needs of tomorrow’s workforce.

“We have focussed on good design, innovation and technology with operable windows and breakout spaces to maximise occupant’s health and wellbeing. A shared, bookable rooftop garden with views over the Hills, state of the art end of trip facilities and flexible floor plates create an optimal and efficient workplace environment. The building is also linked to an adjoining carpark, avoiding the need to excavate a basement carpark and maximising efficiencies for tenants.”

The development is targeting a 5 Star Green Star Rating and a 5.5 Star NABERS Energy Rating. Additional sustainable features include façade treatments to reduce solar glare, targeting 90% of total construction waste to be diverted from landfill and provision of electricity only energy supply (no gas).

Construction of the office development is being undertaken by Hindmarsh Construction, a national business established in Canberra, with locations in Adelaide, Sydney and Brisbane. Hindmarsh has successfully delivered award winning landmark buildings within the SA capital’s CBD and across Australia.

57 Wyatt Street’s office design complements Adelaide’s “laneway” culture. When complete, the building will provide 670sqm floor plates featuring Juliette balconies, a rooftop garden and amenities, flexible workspaces, end of trip facilities, a retail space servicing the building with street frontage and direct access to secure parking.

The site is adjacent to Flinders Street and in close proximity to shops, cafes, restaurants and retail outlets. It is well serviced by public transport and local amenities, such as Hindmarsh Square and Rundle Mall, both within short walking distance.

Centuria has jointly appointed CBRE’s Andrew Bahr and JLL’s Tom Budarick to lease the building’s remaining office accommodation.

1. Property Council of Australia Office Occupancy Survey for August 2022
2. Knight Frank Adelaide CBD Office Market Report March 2022. Previous reported Adelaide CBD Office