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Simon Toovey
Lessons from Adelaide:
Investment and
Projects
1 May 2018
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Ownership profile skewed to domestic private investors
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Ownership profile skewed to domestic private investors
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Adelaide is the second most liquid CBD market in Australia
JLL Liquidity Index, 2000 to 2016 and Adelaide CBD Transaction Volumes, 2008 to 2018
Market Average
Adelaide 7.8%
Sydney 6.3%
Melbourne 6.8%
Brisbane 8.6%
Perth 5.1%
Canberra 5.1%
$0
$100
$200
$300
$400
$500
$600
$700
$800
Transaction Volumes
(AUD Millions)
* nb. 2015 annual transaction volume includes an estimated total for the sale of 80 Grenfell Street. This asset was purchased as part of the AUD 400.0 million purchase of
* as at 1Q18
Source: JLL Research
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
176-207 bp spread to Sydney and Melbourne offers value
National CBD office market prime yields (midpoint), 2008 to 2018
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18
Adelaide Sydney Melbourne Brisbane Perth Canberra
Source: JLL Research
Adelaide increasingly on global investment radar
Selected commercial transactions, Offshore investors
Date: December 2015
Purchaser: Blackstone
Purchaser Origin: USA
Vendor: epc.Pacific
Vendor Origin: Australia
Price: $400.0 million
Price per sqm: $8,575
Yield (Initial): 6.5%
Rundle Place and 80 Grenfell Street, CBD
Date: November 2016
Purchaser: Credit Suisse Asset Management
Purchaser Origin: Switzerland
Vendor: GDI Property Group
Vendor Origin: Australia
Price: $125.0 million
Price per sqm: $4,929
Yield (Initial):6.8%
25 Grenfell Street, CBD 121 King William Street & 99 Gawler Street, CBD
Date: July 2017
Purchaser: Blackstone
Purchaser Origin: USA
Vendor: Motor Accident Commission
Vendor Origin: Australia
Price: $93.0 million (combined)
Price per sqm: $4,066 (blended)
Yield (Equivalent): TBC
45 Pirie Street, CBD
Date: August 2017
Purchaser: AEP Investment Management
Purchaser Origin: Singapore
Vendor: CorVal Partners
Vendor Origin: Australia
Price: $105.0 million
Price per sqm: $5,429
Yield (Initial): 8.40%
11 Waymouth Street, CBDDate: March 2018
Purchaser: MapletreeInvestments
Purchaser Origin: Singapore
Vendor: DEXUS/CPPIB
Vendor Origin: Australia/Canada
Price: $202.5 million
Price per sqm: $6,532
Yield (Equiv.): 6.50%
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Infrastructure: A city moving forwards
Central Market Arcade Redevelopment Market to Riverbank Link
Festival Plaza Upgrade, Adelaide CBD
Redevelopment of Central Market Arcade into a food and wine destination of international repute, as part of a thriving mixed-use place.
Guiding principles include commercial, residential, hotel, student accommodation and retail development options.
Tram Extension to North Adelaide and East End
A joint project by the City of Adelaide and the State Government, the Market to Riverbank Link project involves the upgrade of Bank Street, Leigh Street, TophamMall, Bentham Street and Pitt Street to create new retail, restaurant and bar laneway network between Adelaide Central Market and the Adelaide Riverbank.
A major upgrade of Festival Plaza within the Riverbank Precinct.
Adelaide Casino will deliver a $300 million redevelopment. Walker Corporation has DA approval for a 40,000 sqmcommercial tower.
The SA Government will deliver 16,500 sqm of public space within Festival Plaza.
The State Government has committed $80 million in funding for the first stage of the AdeLINK tram network to the city’s East End. It will deliver a 1km extension along North Terrace, from King William street to East Terrace and an extension along King William Road to the Adelaide Festival Plaza precinct.
“South Australia continues to sprint. SA may be Australia’s fastest growing economy this financial year”. (Deloitte Access Economics, April 2018)
Zero Stamp Duty on non-residential property from 1 July 2018
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
2015 2016 2017 2018
Commercial & General: National Private Real Estate Fund Manager and Investor
Workplace Health
Logistics Communities
Workplace – Adelaide Examples
South Australian Police
2010
$155m
19,000m2
15 Years
Completion:
Project Value:
Project Size:
Initial Term:
Tenant:
Tenants: People’s Choice Credit Union,
Santos Limited
2015
$140m
22,000m2
12 Years, 10 Years
Completion:
Project Value:
Project Size:
InitialTerm:
SA Police HQ, Angas St, Adelaide
People Choice Credit Union, Flinders St, Adelaide
Health – Adelaide Examples
Calvary Healthcare
2019
$325m
57,000m2
363 IPUs plus 60 day beds
30 Year triple net lease
Completion:
Project Value:
Project Size:
Beds:
Initial Term:
Tenant:
Tenant: South Australian Health and
Medical Research Institute
First Proton Therapy Centre in
Southern Hemisphere
2021
$260m
22,000m2
30 Years
Featuring:
Completion:
Project Value:
Project Size:
InitialTerm:
Calvary Adelaide Hospital
SAHMRI 2
Logistics – SA Examples
Tenant: Coca-Cola Amatil
2014
$49.5m
46,500 sqm
14 hectares
10 years
Completion:
Project Value:
Project Size:
Expansion
Land:
InitialTerm:
Tenant:
Completion:
Project Value:
Project Size:
InitialTerm:
Siemens Australia
2015
$5.7m
2,850 sqm
10 years
Tenant: Incitec Pivot
2018
$25m
20,000 sqm
15 years
Completion:
Project Value:
Project Size:
InitialTerm:
Tenant: Cameron Interstate
2013
$6m
6,300 sqm
10 years
Completion:
Project Value:
Project Size:
InitialTerm:
Communities
Tenant: Adelaide University
Student accommodation
2006
$43m
97 apartments
15 Years
Purpose
Completion:
Project Value:
Project Size:
InitialTerm:
WEST (former Football Park)
University of Adelaide “The Village”
Tenant: South Australian National
Football League
Mixed use urban infill
2028
$1 billion +
23 hectares
Purpose
Completion:
Project Value:
Project Size:
Contact Details
SIMON TOOVEY
Executive Director – Strategy and Business Development
M 0417 777 277
