Centuria’s (ASX: CNI) 57 Wyatt Street boutique office tops out

• Located in the heart of Adelaide's CBD
• PCA's office occupancy for Adelaide currently 78%
• Development is 55% preleased

Centuria’s (ASX: CNI) $42 million A-Grade office building in Adelaide’s CBD has topped out.

The six-storey, 4,600 square metre office asset is scheduled to open in early 2023, with over half the building (circa 55%) preleased.

While the building is being developed by Centuria Capital Group, Centuria Office REIT (ASX: COF) will take ownership on completion. 57 Wyatt Street in Adelaide’s CBD will become the REIT’s second South Australian property.

The office market is looking promising. The Property Council of Australia’s Office Occupancy Survey showed Adelaide enjoyed a 7 percentage point increase to 78% in office occupancy between August and September.

Source: Property Council of Australia’s Office Occupancy Survey September 2022.

Grant Nichols, Centuria Head of Office and COF Fund Manager, said, “Centuria has strong conviction in the prime Adelaide CBD market and the pre-leasing commitments at our Wyatt Street development is reflective of our confidence.

“It is encouraging to see Adelaide’s workforce strongly returning to the office, leading the nation. This trendsetting behaviour is mirrored by a flight to quality, as there is strong demand for high quality, new generation office buildings in Adelaide.”

Andre Bali, Centuria Head of Development, added, “We were able to structure and deliver this unique off-market transaction with Hindmarsh, who is a long-standing partner of Centuria, and back the South Australian commercial office market.

“Our development team has extensive experience in delivering fit-for-purpose, high quality, sustainable office accommodation suited to the needs of tomorrow’s workforce.

“We have focussed on good design, innovation and technology with operable windows and breakout spaces to maximise occupant’s health and wellbeing.

“A shared, bookable rooftop garden with views over the Hills, state of the art end of trip facilities and flexible floor plates create an optimal and efficient workplace environment. The building is also linked to an adjoining carpark, avoiding the need to excavate a basement carpark and maximising efficiencies for tenants.”

Construction is being undertaken by Hindmarsh Construction, with the development targeting a 5-star Green Star Rating and 5.5-Star NABERS Energy Rating.