Cbus Property is an early mover as the tide turns in the Adelaide market, unveiling plans for a $300 million new office tower on Pirie Street.
The super fund developer took over the former Planet Nightclub site last year through an off-market deal with its previous owner, the Adelaide Development Company, after the site won approval for a 21-level office tower.
Since then stronger demand from the defence, mining and health industries have propelled steady improvement in the CBD office market, with the vacancy rate falling further.
Designed by Woods Bagot, the 17-level tower now planned will comprise 30,000 square metres of office space for 83 Pirie Street, on the corner with Freemasons Lane.
Floor plates will average 1750 square metres and can potentially be merged within the building to create a so-called vertical community. A 300 square metre rooftop terrace completes the tower while at its foot are 365 sq m of retail.
“There is a distinct lack of supply for contiguous new-built commercial stock in Adelaide’s city centre,” said Cbus Property chief executive Adrian Pozzo.
“This demand is driven by positive employment rates and sustained spending across defence, renewable energy and technology sectors, including the implementation of the 10 Gigabyte Adelaide initiative, which indicates demand will only increase.”
Construction of the 83 Pirie tower will kick off once the developer has secured a sufficient pre-commitment. It would take around two years to complete.
The project will target a Gold WELL rating, with features such as electric car charging stations, considerable natural light from the building’s three street frontages, and drought resistant landscaping on the rooftop terrace.
Developers and institutional investors are turning their attention to Adelaide, along with the other resource-driven markets of Perth and Brisbane, as the Sydney and Melbourne markets tighten and yields there hit cyclical lows.
Cbus Property has already developed a 21,450 sq m office tower at 50 Flinders Street behind the Pirie Street site.
Fund manager Charter Hall is also making a big play in the Adelaide CBD, winning large pre-commitments from the South Australian Attorney-General’s department and the country’s biggest miner, BHP, for its $250 million office redevelopment next to the Adelaide GPO.