CBD Retail Investment | $3,675,000 | Net Yield: 6.10% | SA

This exceptional retail freehold asset represents the calibre of strategically positioned, income-producing properties Rethink Investing continues to secure on behalf of clients seeking premium CBD exposure at compelling valuations.

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Positioned at 251 Waymouth Street in Adelaide's rapidly evolving West End precinct, the property sits at the heart of one of the CBD's most dynamic mixed-use areas. Waymouth Street runs east-west through the city centre and is characterised by a strong mix of commercial office buildings, hospitality venues, and residential developments. The street is home to major organisations including ANZ, EY, and News Corp Australia, reflecting its importance as a key commercial corridor.

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The immediate precinct benefits from proximity to Light Square and a growing hospitality scene with numerous cafés, restaurants and bars. The property sits within Adelaide's western CBD sector, an area that has experienced significant urban renewal and population growth over the past decade. The area is supported by major institutional anchors including the $2.44 billion Royal Adelaide Hospital, the BioMed City research precinct, and the University of South Australia's City West campus, creating strong employment and student populations within walking distance.

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The asset comprises 792 square metres of total building area (425 square metres of net lettable area) on a 264 square metre freehold site. The property has been extensively renovated and features a highly versatile layout suitable for retail, showroom, or office tenants, with multiple smaller and open-plan spaces, lift access, and modern amenities including men's, women's, and disability facilities. The beautiful heritage façade positions the asset as both functional and visually distinctive.

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The property is secured to the Adelaide Institute of Hair & Beauty (AIHB), a Registered Training Organisation founded in 2013 specialising in hair and beauty education. AIHB operates as a CRICOS-registered provider, delivering education to both domestic and international students. The tenant has made significant investment in fitting out the property, demonstrating strong commitment to the location.

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The new lease commences 1 April 2025, returning $220,000 net per annum, increasing to $220,700 net by April 2026. The lease runs to 31 March 2030 with 3 x 5-year options extending tenure through to 2045. All outgoings (excluding management) are the tenant's responsibility, ensuring clean income to the landlord. Annual outgoings total $23,423, comprising rates, water, levies, land tax and management.

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The property is offered at $3,675,000—well below asking price—delivering a net yield of 6.10% and zero stamp duty, representing a saving of approximately $185,000. The property trades at $275 per square metre, significantly below comparable Adelaide CBD retail properties which achieve $410 to $586 per square metre, highlighting substantial value positioning and future rental upside.

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The property's versatile layout and ability to subdivide internally provides flexibility to reduce future vacancy risk by holding multiple tenancies, adding operational defensiveness. Strong institutional anchors ensure ongoing tenant demand, high visibility, and excellent access to Adelaide's growing workforce and student population.

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With a purchase price of $3,675,000 and total cash required of $1,374,703 (including 35% deposit and purchasing costs), the investment delivers a net annual cash flow return of $219,640 and a return on equity of 4.70% in pure cash flow terms. When accounting for conservative capital growth of 5%, 7% and 10%, the return on equity increases to 18.05%, 23.39% and 31.39% respectively.

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With secure lease income, exceptional value positioning, zero stamp duty benefit, strategic CBD location, versatile layout, and long-term tenant security extending through to 2045, this acquisition reflects the calibre of CBD retail assets that Rethink Investing continues to secure for clients.

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About Rethink Investing

• Australia & New Zealand's largest and most experienced commercial buyer's agency
• $7 billion+ in commercial property secured for clients
• Exclusive access to 70% off-market opportunities
• Specialists in high-yielding commercial property investments