Adelaide Uni collects $25m from car park sale
Investor hunger for CBD car parking is continuing unabated, with the University of Adelaide netting $25 million for a site that includes an eight-level multi-storey car park.
The 498-bay car park was the main attraction in a portfolio that also included three old commercial and retail buildings on and around Frome St, near Rundle St and North Terrace.
A local car park operator saw off heated competition from investors and developers to secure the properties, which totalled 4157sqm and were for sale as a whole or as three individual sites.
Colliers Internationals’ Paul van Reesema, Alistair Mackie and Ian Thomas facilitated the sale, with van Reesema saying the site’s development potential had almost certainly driven the price up.
“Given the superior location and flexible Capital City zoning, we expected these properties to attract interest from a wide range of investors and developers and we were not disappointed,” he says.
It’s hard to imagine a better site for this form of development
“The future potential of these sites is vast and as such we received interest from buyers interested in investment, development and value-add opportunities. The properties are situated in an unrivalled position in the absolute heart of the city’s vibrant east end precinct, and offered substantial holding income potential.”
Mackie says that while the site will continue operating as a car park for now, there was a strong chance it would be targeted for development in the future.
“Given the Capital City zoning and its unrivalled east end location, the opportunities for major mixed use and residential development, which might also incorporate the existing car park, are both exciting and vast. It’s hard to imagine a better site for this form of development,” he says.
The sale continues the strong interest in Adelaide’s CBD car parks, after another car park just metres away at 52-70 Frome St sold in July for more than $27 million.
And the latest deal comes after a pair of Melbourne car parks were last month put to market with an expected price tag of $110 million.
The Melbourne and Carlton multi-level properties are home to more than 1000 bays and combined are considered the largest Melbourne CBD car park portfolio to be offered for sale in more than a decade.