Who owns Adelaide? We reveal the foreign investors and wealthy SA families who run the CBD’s biggest buildings

OFFICE towers and large commercial buildings dominate Adelaide’s skyline. But who are the foreign investors and SA property magnates who own the major properties in our city’s square mile? Browse our interactive map to find out.

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FOREIGN investors have swooped on Adelaide’s prime CBD real estate in recent years but the state’s wealthiest families are holding their own as the largest investors in the square mile.

An analysis undertaken by Advertiser.com.auand international property firm JLL reveals foreign investors have amassed more than 20 per cent of the city centre’s office space.

While the share of foreign ownership has doubled since 2013, South Australian families including the Shahins, Crottis and DiMauros control the lion’s share of buildings.

Local families have accumulated 39 per cent of the city’s office real estate, making them the biggest investor in the Adelaide market.

The analysis includes all CBD office buildings larger than 5000 square metres, totalling more than 1 million square metres of floor space.

Who owns Adelaide

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JLL director Roger Klem says foreign buyers typically enter the Australian property sector through larger markets on the eastern seaboard, but realise Adelaide is providing burgeoning investment opportunities.

“Adelaide commercial property delivers investors high rates of return with relatively low risk,” he says.

“International investors generally have very large pools of funds to invest, coupled with access to relatively low costs of debt.

“The allocation of property is generally weighted to the major markets of Sydney and Melbourne with a small but important component allocated to smaller markets such as Adelaide and Canberra, which offer returns of 150 basis points above the major markets.

“International investors are also attracted by the number of government leases in the market and the propensity for relatively long term leases.”

While German funds — including Real I.S. and SachsenFonds — have offloaded major holdings in recent years, Singaporean investors have burst on to Adelaide’s property scene and now control close to 7 per cent of the city’s office stock.

In recent years, they’ve splashed out close to $600 million on the Myer Centre building in Rundle Mall, the Attorney-General’s Department headquarters on Pirie St, and ANZ House on Waymouth St.

Student accommodation is also of interest to the Singaporeans, who are leading the development of 260 apartments in the East End and 756 rooms on Gray St in the city’s west.

US investment house Blackstone has accumulated a tidy office portfolio, last year adding the Motor Accident Commission’s portfolio to its $400 million acquisition of the Rundle Place retail and office precinct in 2016.

CBRE director Ian Thomas said unlike other Australian markets that experienced severe boom and bust cycles, Adelaide offered the market and government stability that foreign investors sought.

“This consistent market outlook, coupled with geographic connectivity to Asia, have strengthened investment activity in Adelaide,” he says.

“Investment follows investment and, therefore, the Elon Musk (tech billionaire) and Sanjeev Gupta (Whyalla steelworks owner) stories are strong and continue to build momentum in the Adelaide market.

“While foreign groups have invested on an isolated basis in the past, we’re seeing a more wholesale acceptance of Adelaide as an investment location.”

But while foreign investors have upped their stake in the CBD in recent years, the global financial crisis caused a major shift in the city’s ownership landscape.

Drained of cash, the country’s large institutional investors sold out while wealthy local families bought up and have since ridden a wave of capital growth.

SA property owner Nick DiMauro.

Con Makris, who recently relocated from SA to Queensland.

With an extensive list of shopping centres and office towers to his name, BRW Rich List member Nick DiMauro’s wealth has almost doubled since 2013 and he is now worth $530 million.

Fellow Rich Lister Con Makris owns a prominent building at the southern end of King William St while the Shahins control assets on King William St and North Tce.

The Maras and Angelopoulos families have been long-term landlords along the retail strips of Rundle Mall and Rundle St while the Cohens are prominent on Pirie St and the activation of Leigh St and Peel St has been inspired by prominent owner the Ginos family.

More recently, the cashed-up Crotti family — owners of the San Remo pasta empire — have snapped up two CBD buildings for $150 million.

Maurice Crotti’s family recently invested heavily in the CBD. Picture: Keryn Stevens

Theo Maras owns a number of properties along Rundle St and Rundle Mall. Picture: Roger Wyman

Property Council SA executive director Daniel Gannon says the city’s property ownership landscape was “uniquely Adelaide” compared to other Australian cities.

“Our market is known for its small-to-medium-sized family-owned businesses rather than institutional investors,” he says.

“This means that innovative landlords can have a big impact and influence on certain precincts such as the Peel and Leigh St laneways or the vibrant East End.

“But it also means that some of our office stock needs investment.”

Mr Thomas says Adelaide’s increasing number of high-net worth individuals have found value investing in city real estate.

“Local privates ... are comfortable with the market they know,” he says.

While Chinese investors have not made an impact on Adelaide’s office market, they are fuelling Adelaide’s apartment boom.

A number of China-backed projects have been completed around the Chinatown precinct, while the city’s largest apartment project, West Franklin, has attracted $300 million of investment from China-backed developer Greaton.

The former Merc site on Gouger St and former New Mayfield site on Sturt St have also been acquired by Chinese interests.

Local developers are also getting in on the apartment action, with prominent developer Theo Samaras overseeing the Adelaidean project on Frome St — set to become the city’s tallest tower.