The former Planet nightclub site has been sold to the property development arm of superannuation fund Cbus which plans to start construction of a $72 million office tower on the Pirie Street site next year.
Cbus Property made an off-the-market purchase for a 2911 sqm parcel of land, owned by the Adelaide Development Company, including the nightclub.
ADC secured development approval in March for a Woods Bagot-designed 21-storey 30,000sq m office tower on the site spanning 73-85 Pirie Street.
Cbus Property is expecting to pre-commit the development and begin construction in 2019, capitalising on what it says is the lack of “new generation” office stock in Adelaide.
The former Planet nightclub building will be demolished and replaced with a $72 million office tower.
The company intends on marketing the new office space immediately.
“The site at 73-85 Pirie Street, Adelaide is arguably the best office development site in Adelaide,” Cbus Property chief executive Adrian Pozzo said.
“We are extremely pleased to have secured the properties and are excited about the opportunity to develop a new generation office building for Adelaide which will offer occupants all the key amenity features and efficiencies necessary to attract Adelaide’s best talent.
“We believe in the growth of the Adelaide economy which will translate to the office leasing market in the short to medium term.
“Growth in mining, defence and renewables in Adelaide are all reassuring, plus the City of Adelaide’s investment in the 10 Gigabit Adelaide project is progressive thinking that will encourage further private investment in the city.”
Floors on the proposed building are about 1800 sqm. The tower will also feature a podium carpark and has potential for a rooftop outdoor terrace.
It is the second major acquisition by Cbus Property, which made its first foray into the Adelaide property market in 2013 with the purchase of the People’s Choice Credit Union site on Flinders Street.
The ADC, owned by the Roche family, was founded in 1922 and holds a number of properties in the Adelaide CBD, including the state heritage-listed Gawler Chambers on the corner of North Tce and Gawler Place.
Company chief executive Ian Marker said it was “mutually beneficial” to sell the Pirie St sites to Cbus Property.
“These sites were strategically identified and acquired by ADC as long-term investments, with 81-85 Pirie Street having been ADC’s head office for nearly 40 years,” he said.
Article by Renato Castello, originally appeared in The Advertiser on May 16, 2018