Centuria opens Adelaide’s newest CBD office building

Post-pandemic design features attract c.80% pre-leasing deals

• Newest A-Grade office building targets 70% of Adelaide businesses seeking c.500sqm¹
• Amenities: Retractable glass façades, Rooftop BBQ entertaining terrace, Hotel-style end of trip facilities
• $40m, six-storey building designed to a five-star Green Star rating and 5.5 Star NABERS Energy Rating
• Owned by the Centuria Office REIT (ASX:COF), neighbours three Centuria office assets

Australia’s largest listed pure-play office fund, Centuria Office REIT (ASX:COF), has opened Adelaide’s newest office building at 57 Wyatt Street within the capital’s CBD, celebrating the milestone with the asset’s new tenant customers.

Already, c.80%² of the 4,600sqm A-Grade asset is leased to blue-chip tenants including Hindmarsh, Cox, WGA, Zurich, and Australian Public Affairs (APA), who were attracted to the boutique office building’s moderately-sized floorplates and post-pandemic design features.

According to CBRE, approximately 70% of Adelaide office leasing enquiries are for space of c.500sqm but the lion’s share of the city’s available floorplates range between 800sqm – 1,000sqm.

Grant Nichols, COF Fund Manager and Centuria Head of Office, said, “In this post-pandemic environment, we had a unique opportunity to provide the local market with office accommodation that is most in demand and it seems our 670sqm floorplates have hit the mark. More importantly, we listened to occupier’s needs in regard to attracting and retaining workers back into office accommodation, to facilitate productivity and collaboration. While table-tennis, hammocks and slides between floors are fun, they aren’t conducive to productivity.

“We took into consideration what people like about working from home – access to fresh air, quiet spaces, being able to sit in the sunshine or eating alfresco during the lunch hour. We believe these are the simple measures that can facilitate an efficient and effective worker.”

The $40 million office building features include retractable glass facades panels, providing rare fresh air into the workspaces, a rooftop BBQ entertaining terrace with pergola gardens providing a city skyline vista, bike storage, personal lockers, and hotel-style end of trip facilities.

The property was acquired and developed by Centuria Capital Group’s in-house development arm, headed by Andre Bali.

Mr Bali commented, “The Wyatt Street address is a fantastic, central location providing walkable access to retail, restaurants and other commercial premises. Previously, it was a modest on-grade car park that contributed little to the wider fabric of the surrounding business and hospitality neighbourhood.

“It was a simple decision to add value to the site with this boutique office development, which is sympathetically designed to reflect the surrounding heritage architecture. We are very excited to welcome our tenant customers to their new work home.”

The development is designed to a 5 Star Green Star Rating and has targeted a 5.5 Star NABERS Energy Rating. Sustainable features include façade treatments to reduce solar glare, electricity only provisions (no gas) and c.90% of total construction waste was diverted from landfill during development. Construction of the property was undertaken by Hindmarsh Construction.

57 Wyatt Street 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.

Across the Centuria Group, the real estate funds manager has a six-asset South Australia A-Grade office portfolio worth $641 million³ and a current 99.6% portfolio occupancy⁴. The Wyatt Street site adjoins the Group’s 80 Flinders Street office building and carpark and is in close proximity to 25 Grenfell Street and 80 Grenfell Street.

Centuria jointly appointed CBRE’s Andrew Bahr and Georgina Turner along with JLL’s Tom Budarick and Victoria Everett to lease the building’s remaining office accommodation.

1. Source: CBRE
2. Including Heads of Agreement
3. Property values as at 31 December 22
4. As at 30 June 23 and inclusive of rental guarantees