 Asset Class: | Office |
 Price: | $ 3650000 |
 Net Yield: | 7.07 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<span style="font-weight:normal;">This dual-tenanted, refurbished office asset in the heart of revitalised Port Adelaide offers investors an attractive combination of strong cash flow, long-term income security, and future growth potential. Purchased for $3,650,000 with a true net yield of 7.37% (with no stamp duty payable), the asset presents compelling value in a tightening office market. With a secure WALE of 7.4 years by income, high-quality improvements, and rare dual street frontages, the property is well-positioned to benefit from future capital growth. As office vacancy rates continue to fall and interest rates soften, cap rate compression could significantly increase value — even a shift to 6.25% would represent a $330,000 uplift. Add to this the savings of around $175,000 in stamp duty and its strong location fundamentals, and this property stands out as a strategic, blue-chip acquisition.</span>
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<b>Port Adelaide Location Summary</b><br><br>Port Adelaide is a vibrant waterfront suburb located approximately 14 km northwest of Adelaide’s CBD. Known for its rich maritime heritage, it has evolved into a dynamic precinct blending history, culture, and economic opportunity. The area is undergoing significant transformation, with state-led revitalisation projects and private developments attracting both residents and investors. Its character is defined by historic buildings, street art, museums, cafes, and strong community pride, while still maintaining its status as one of South Australia’s key industrial and logistics hubs.<br><br>Port Adelaide forms part of the City of Port Adelaide Enfield, one of Adelaide's largest councils by population. <span style="color:rgb(51, 51, 51);">At the 2021 Census the City of Port Adelaide had a population of 132,400 people. </span>The suburb and surrounding areas are strategically zoned for mixed-use, commercial, and employment purposes. Its strong economic base includes shipping, logistics, defence, and advanced manufacturing. These sectors continue to attract long-term infrastructure and employment growth, underpinned by its proximity to Outer Harbor and key transport corridors.<br><br>Many of the more than 8,100 businesses based in The City of Port Adelaide operate on a national and global level. With significant growth in the Defence sector and multi generational submarine and surface shipbuilding contracts as well as urban redevelopments at Port Adelaide and across the Council region, the Council area is poised for a substantial phase of growth.<br><br>With lower commercial vacancy rates in an already tight market compared to other capital cities, Port Adelaide offers strong fundamentals for investors. Adelaide continues to experience robust demand in manufacturing and defence sectors—industries that heavily rely on the Port of Adelaide for logistics and trade. This demand is driving broader economic activity across the region. As job opportunities grow, population growth has accelerated, particularly among young families, leading to increased demand for childcare and essential services. These demographic trends are expected to sustain ongoing demand for well-located office assets in Port Adelaide.<br><br><b>South Australia’s Strength</b><br><br>South Australia is experiencing a surge in economic growth driven by defence, technology, and renewable energy sectors. Supported by a stable government and strategic infrastructure investments, the state continues to offer strong fundamentals for commercial property investment, especially in urban renewal zones like Port Adelaide.
Additional Location Information File<b>Relationships Australia </b><br><br>Relationships Australia are a community-based, not for profit Australian organisation who have been operating for 75 years. Comprising around 2,407 staff within 107 locations, 39 remote locations, 138 outreach locations and 515 programs offered. Relationships Australia promotes the importance of respectful relationships for both individual mental health and general community outcomes, and through advocacy they strive to influence policy, systems and services that empower everyone in Australia to build and maintain respect in all their relationships. <br><br><span style="color:rgb(51, 51, 51);"><b>Nganana Inc</b></span><br><br>Nganana Inc. is a not-for-profit community development organisation specialising in support services from a cultural and inclusive perspective. We are a National Disability Insurance Scheme (NDIS) registered organisation currently working exclusively in the disability sector.
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<span style="color:rgb(51, 51, 51);"><b>Relationships Australia </b></span><br><br><span style="color:rgb(51, 51, 51);"> 10+5 year lease commencing December 2023 with annual CPI rental increases and the tenant responsible for a proportionate share of all outgoings (excluding land tax). </span><br><br><span style="color:rgb(51, 51, 51);"><b>Nganana Inc</b></span><br><br><span style="color:rgb(51, 51, 51);">3.6+3 year lease commencing February 2024 with annual CPI rental increases and the tenant responsible for a proportionate share of all outgoings (excluding land tax). </span>
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Rental Comparisons: Subject Property: 12 Todd Street Port Adelaide - 588sqm - $425/sqm 147-157 Commercial Road, Port Adelaide = $407/sqm Tenancy 2, 25 Nile Street, Port Adelaide $485/sqm 91-93 Commercial Road, Port Adelaide = $331
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Asking Price: $3,700,000<br>Negotiated Price: $3,650,000<br>Net Yield: 7.07%<br>True Net Yield: 7.37% (No Stamp Duty)<br><br><b>Tightening office</b> <b>market</b> in a<b> blue chip, booming location</b>. <br><br><b>Office vacancy in Adelaide has tightened dramatically </b>over the last 2 years and continues to tighten in the Port Adelaide region. <br><br>Buying now at high yields could allow for <b>future cap rates to tighten</b> causing intense price increases. For example; if tightened to 6.25%, without factoring in any changes like increases in annual rental rates, the property would be worth $4,000,000. (or $330,000 gain) <span style="color:rgb(51, 51, 51);">Along with a tightening market, interest rates are expected to fall so this outcome is very much a high probability. </span><br><br><b>No stamp duty</b> saving circa <b>$175,000 </b>on purchasing costs<br><br><b>Dual tenanted</b> anchors this secure property <br><br><b>Long leases </b>of 10 years (expiring 2033) and 3.6 years (expiring late 2027) giving a secure <b>WALE of 7.4 years </b><span style="font-weight:normal;">(</span>by-income) <br><br><br>Property:<br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Refurbished two-level office building totalling 588sqm</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">*, featuring a flexible mix of reception, offices, training rooms, boardroom, open-plan workspaces, and updated floor coverings on the ground floor.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Site area of 443sqm*,</b></span><span style="color:rgb(51, 51, 51);font-style:normal;font-weight:normal;"> split into the following;</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Ground Floor: 255sqm</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">* including reception, IT and filing rooms, three (3) large training rooms, archive storage, kitchenette, and male, female, and disabled toilets.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>First Floor: 333sqm</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">* accessed via foyer stairs and a newly installed lift, offering several offices, boardroom, open-plan areas, kitchenette, storage, and additional male and female toilets.</span></p></li></ul><b> </b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-weight:bold;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Rare dual street frontages</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> — Todd Street and Stevedore Place</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Multiple on-site carparks</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> and a storage area </span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Zoned 'Urban Activity Centre’</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> within the City of Port Adelaide Enfield, allowing for a range of commercial and mixed-use developments.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Key refurbishments</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> providing functional, well-configured office accommodation suited to training, education, or commercial operations.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Ceiling heights</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> of 3.2m* (ground floor) and 3.8m* (first floor) create a spacious and professional environment across both levels.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>An abundance of natural light </b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- the property is filled with natural light making it an ideal office location that will always draw attention from tenants </span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Amenities</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> include two kitchenettes, multiple toilet facilities, archive storage, and a communications room.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Located in the heart of revitalised Port Adelaide</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, benefiting from strong local investment, infrastructure upgrades, and excellent connectivity to the CBD and Outer Harbor.</span></p></li></ul>
