Nikos Property pays $175m for Flinders St tower in Adelaide’s CBD
A Melbourne-based petrol tycoon has splashed out $175m for the CBD home of People’s Choice Credit Union, in the biggest office deal in Adelaide for more than two years. And COVID-19 restrictions meant he wasn’t even able to inspect it beforehand.
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The CBD home of People’s Choice Credit Union has been snapped up by a Melbourne family in the biggest office property sale in Adelaide for more than two years.
Nikos Property Group has paid $174.65m for the tower at 50 Flinders St, taking it over from vendor Cbus Property.
Led by petrol tycoon Nick Andrianakos, Nikos Property also owns the adjacent Santos Centre, paying $101.35m for that property in 2018.
The sale of 50 Flinders Street is the biggest in the Adelaide office market since the $184.6m purchase of Bendigo and Adelaide Bank’s Grenfell St headquarters by Centuria Capital Group and Lederer Group in 2018.
Nikos Property investment manager Paul Lachal said COVID-19 restrictions prevented the family from inspecting the property before its purchase, but it had a “fair degree of confidence in the Adelaide market”.
“We actually bought the building without inspecting it – we had experts review it and we knew it because we own the building next door,” he said.
“We look at Adelaide and while we may not get the type of capital growth that we could get in other centres there’s a consistency of income.
“We have $275m invested in the Adelaide CBD so I’d say we’re one of the largest investors in Adelaide.”
The 15-storey building comprises around 22,000sq m of space and is fully leased to anchor tenant People’s Choice Credit Union and other tenants including oil & gas giant Santos, which sub-leases about 7000sq m to the Department of Planning, Transport and Infrastructure.
DPTI will relocate to a new building on Pirie St in 2023.
The Flinders St building was developed by local developer Commercial & General and later Cbus Property in 2015, with the credit union taking a pre-commitment.
The current lease to People’s Choice, which accommodates about 10,200sq m, expires in 2027.
The Andrianakos family, led by post-war Greek migrant Nick, made its millions in Victoria’s fuel industry.
In 2017 its Milemaker Petroleum business pocketed $95m from the sale of 46 petrol station operations to Caltex while retaining ownership of the properties.
The deal provided a platform to boost investment in commercial property across Victoria, South Australia and Queensland.
The group is currently refurbishing the ground floor of Santos Centre – its first acquisition in Adelaide – after securing a 10-year lease extension with Santos last year.
The $2.5m project will include a renovated lobby with a new cafe, and upgraded facilities for staff who cycle to work, with completion expected early next year.
The Flinders St sale was brokered by Knight Frank partner Guy Bennett.