Property
Issue No. 50 - December/ /
Private investors new property stars
Private investors are set to continue dominating the commercial property sector in South Australia in 2010.
As large national and international companies liquidated assets and retreated from SA during the recent economic downturn, attractive investment opportunities arose for the private sector.
The door was open to private investors and they answered the call. The six largest commercial property transactions in Adelaide in 2009 were all made by private investors or syndicates – the largest, 25 Grenfell Street, selling for $76 million in March.
The only factor slowing this trend will be lack of opportunities in 2010.
Competition for commercial property is likely to heat up in the next year as confidence returns and opportunities diminish; 2009 has been a great window for private investors in the upper range (>$20m) but it is closing fast.
When new Federal mandatory disclosure measures for energy efficiency take effect on 1 July 2010, we will likely see many commercial properties in Adelaide undergo eco-upgrades to improve their appeal to tenants and, ultimately, their value and saleability.
New mandatory disclosure measures will require commercial property of more than 2000m² to disclose its energy efficiency rating before a sale can be transacted. This will polarise the “haves” and “have nots” in terms of environmental credentials.
The only issue that will prevent more national and global investment in Adelaide is the l...
