Peregrine Corporation has placed $200m properties on market
South Australia’s Peregrine Corporation – one of the top 15 companies in Australia – is selling off a portfolio of properties in Adelaide worth about $200 million.
Peregrine, owned by the Shahin family, said it had determined the latest divestment to be “in line with the strategic plan of the overall business”.
It still has significant property holdings including a number of properties on Rundle Mall, office towers and other assets.
JLL has been appointed to the latest sell-off, which includes 215 North Terrace, 52-70 Frome Street, otherwise known as the East End Car Park, and 28-30 Hindley Street.
Peregrine Corporation director Dr Sam Shahin said the sale of the assets presented a rare opportunity for investors to access a tightly held asset class, being predominately commercial car parks.
“It’s not every day you have the opportunity to purchase a property with its own set of traffic lights on a major city boulevard,” Mr Shahin said, referring to the North Terrace property.
“We have held these assets for a long time and as with all our businesses, we have continually invested in them.
“Each of these properties presents an excellent opportunity for someone to add value via further development.”
Investment activity for 2018 in Adelaide’s CBD is already above the 10-year annual average with JLL predicting it to be the one of the biggest years on record.
“Offshore groups are finding it challenging to deploy capital into core eastern seaboard markets while the Adelaide CBD is providing compelling opportunities in the $100 million to $250 million price point,” said Simon Rooney, JLL’s Head of Retail Investments – Australasia.
Jamie Guerra, Managing Director of JLL’s South Australian business said Adelaide was benefiting from significant infrastructure and private sector investment driven from CBD population growth.
Both the Hindley Street and Frome Street properties have approvals in place for the development of additional floors while the North Terrace property is positioned to capitalise on demand from the nearby residential developments and Rundle Mall.
The world’s largest private equity firm, Blackstone, bought Adelaide’s Rundle Place precinct in 2016 for $400 million. Singapore’s sovereign wealth fund GIC backed the purchase with financing. That deal was brokered by JLL’s head of retail investments, Simon Rooney, and head of office investments Rob Sewell.
