Black Stump put up for sale just two years after it sold for $125 million

A LITTLE over two years since it sold for a whopping $125 million, one of Adelaide’s prime commercial building is back on the ‘for sale’ market.

The ‘Black Stump, at 25 Grenfell St, Adelaide is for sale

A LITTLE over two years since it sold for a whopping $125 million, one of Adelaide’s prime commercial building is back on the ‘for sale’ market.

The Credit Suisse owned ‘Black Stump’ at 25 Grenfell St is expected to sell for about $150 million or higher said an industry source with pre market interest already high.

The A grade building has undergone several updates including a $16 million foyer and lift revamp in 2007, while new airconditioning chillers installed in 2010 improved the NABERS energy rating to four stars.

It boasts around 25,385 sq m with floor plates of more than 1,040 sq and is to be sold via a joint agency arrangement between JLL and Knight Frank. The State Government (PIRSA) and lawyers Minter Ellison are tenants.

The building is in the heart of the CBD and within walking distance of Rundle Mall, Adelaide Central Market and Adelaide Oval.

JLL has the signage rights at the top of the tower with the agency‘s long-term occupation reflecting its prominent location and quality of accommodation said JLL managing-director Jamie Guerra (pictured).

Jamie Guerra, managing director JLL (SA)

“Investor interest in Adelaide continues to build off a record 2018 with in excess of $807 million of commercial transactions in the CBD,” he said.”With the Sydney and Melbourne markets at their peak, Adelaide is ideally placed to capitalise on the weight of funds chasing quality investment product.”

Knight Frank’s head of institutional sales, SA & Victoria, Guy Bennett said occupier demand in Adelaide has maintained the positive trajectory that began two years ago and has strengthened in the past 12 months on the back of improved business confidence in the private sector.

“The $90 billion defence spend, the $6 billion bio medical precinct and no stamp duty are all compelling investment drivers for new capital trying to invest in Adelaide,” he said.

Infrastructure such as the Ten Gigabit Adelaide network has been a significant attractor to firms centralising from outside of the CBD, such as Datacom and BAE Systems, and is also driving new entrants to the city including Technicolor and Allscripts.

Further growth is expected from industry clustering within the biotech, technology, space and defence sectors, with the Adelaide BioMed City and the university precincts already in place.

JLL’s Jamie Guerra, Roger Klem, Rob Sewell and Stuart McCann with Knight Frank’s Guy Bennett, Paul Roberts and Neil Brookes have been appointed to sell the investment.

“25 Grenfell Street is ideally positioned to provide investors with an attractive, stable cash flow in what is now regarded as one of Australia’s newest capital growth markets,” said JLL’s head of office investments Australia Rob Sewell.

An expressions of interest campaign will run until Thursday April 11.