GHD Building, Pirie St offices hit the market

Two of Adelaide’s most recognisable buildings have been put on the market, with one expected to attract offers of about $170m.

Two of Adelaide’s most recognisable buildings have been put on the market in a major test of the city’s office market as it bounces back from Covid-19.

A syndicate led by Sydney property investor Ryan Lee has listed the GHD Building at Victoria Square – one of the largest CBD properties to hit the market this year – while the Raptis family is seeking interest in its office building at 63 Pirie St following a recent multimillion-dollar refurbishment.

Engineering firm GHD has occupied the Victoria Square building since 2008, with other tenants including William Buck, Taylor Collison, Statewide Super and several state and federal departments.

The A-grade building offers a net lettable area of 17,774sqm across 17 levels, and generates a net annual income of about $10.03m.

An annex building on the western side of the main tower is also included in the sale.

Industry sources suggest the property could attract offers of about $170m.

The GHD Building at Victoria Square is expected to fetch about $170m. Picture: Supplied by Cushman & Wakefield

Cushman & Wakefield’s Jed Harley, who is leading the campaign alongside colleagues Josh Cullen and Leigh Melbourne, said the tower had a long history of tenant retention, with three of the major occupiers recently signing long-term lease extensions.

“The significant refurbishment of 211 Victoria Square over time has brought the building up to the standards required by modern workplaces, equivalent to new buildings,” he said.

“Each of the upper office floors features modern finishes, including sandstone feature lift lobbies, new lighting, air-conditioning and amenities. The external improvements include striking floor to ceiling windows, complementing a three-storey glass podium.”

Mr Harley said interest was likely to come from local and offshore investors, as well as REITs looking to invest in Adelaide.

Meanwhile the Raptis family is looking to offload its office building at 63 Pirie St after more than 24 years of ownership.

The Raptis family is offloading its Pirie St office building. Picture: Supplied by Cushman & Wakefield

The 11-storey building, located in the city’s traditional core office precinct, comprises of 11,211sq m, and is home to tenants including Lockheed Martin, Macquarie Group, Telstra Business Centre, Cowell Clarke and Bentleys. About a third of the building is currently vacant.

Mr Harley and colleagues Peter Court and Leigh Melbourne, together with Colliers’ Paul Van-Reesema, Alistair Mackie and James Mitchell, have been appointed to sell the building.

Mr Van-Reesema said extensive upgrades to the property since 2017 had repositioned it to an “extremely high standard”, with a NABERS Energy rating of 4 stars, tracking to 4.5 stars-plus when fully occupied.

“Under its current ownership, 63 Pirie St has been substantially refurbished and repositioned with upgrades to the lifts, air-conditioning, building management, entry lobby, bathrooms and end-of-trip facilities, ensuring it competes strongly in its class,” he said.

“The asset offers an enviable cash flow with passing net income of $2.52m ($4.33m fully leased) and a 3.5 year WALE (weighted-average lease expiry).”

Expressions of interest in the Pirie St building close on August 4, while the 211 Victoria Square campaign closes a couple of weeks later on August 17.