A campus-style office asset fully leased to Lockheed Martin Australia has sold off-market for $28.2 million in what’s been described as a show of confidence in the Adelaide market.
The three-level building at 5-10 Third Avenue, Mawson Lakes, within Technology Park, Adelaide, was bought by the GDA Diversified Property Trust from a Melbourne-based private syndicate.
The asset provides a net lettable area of about 5358sq m on a 3.312ha site and is home to about 350 staff.
Knight Frank agent Max Frohlich handled the deal.
The asset comprises a three-level office building positioned centrally on an L-shaped allotment with at-grade carparking for about 550 vehicles positioned on either sides of the building.
The building has floorplates divided into two wings, with open-plan office areas at either end of the building with reception, common areas, lifts, amenities and plant rooms located centrally in the junction.
The asset, which was originally completed in 1998, was substantially upgraded by Lockheed Martin in 2018.
The facility has low site coverage of less than 10 per cent with significant room for further expansion of the building if required.
“As a freestanding building, it offers Lockheed Martin the ability to secure the building from the public to a level required by the federal government,” a spokesperson said.
Frohlich, Knight Frank head of institutional sales, SA, said South Australia had a rich defence history, dating back to World War II.
“The state has a significant and long-standing defence industry presence… delivering many of the country’s largest and most complex defence projects,” he said.
“This transaction brings total office transactions for the 2023 calendar year to $307.45 million in Adelaide, including one unconditional exchange, however with only 33 percent of these sales (by value) occurring in the second half.”
Technology Park, 15km south of the CBD, is a business community of high-tech organisations. Anchored by global companies such as BAE Systems, Ultra Electronics, Codan Limited, Kongsberg, Saab Technologies, Ellex Lasers, and Raytheon Australia, Technology Park is home to more than 100 companies.