Private investor snaps up BT call centre for $16.5 million on double-digit yield

A private investor has paid $16.5 million to acquire a B-grade Adelaide office building leased to Westpac wealth management subsidiary BT Financial.

The BT Centre located at at 1 Hugh Cairns Avenue comprises a net lettable area of around 6,224 square metres on a total site area of 29,353 square metres. It formed part of the Mirvac Property Trust and had a book value in 2010 of $16.5 million as of June 2012.

The office building generates net annual income of around $1.74 million, which equates to a yield in excess of 10.5%.

Mirvac acquired the building  in 2010 as part of its acquisition of the Westpac Office Trust.

The BT Centre is 13 kilometres south-east of the Adelaide CBD in a commercial precinct adjoining the Flinders University campus and is tenanted by BT Financial on a 12-year lease, commencing in 2007, with two five year renewal options.

CBRE’s Philip Rundle and Alistair Laycock negotiated the sale on behalf of Mirvac as trustee for Bedford Park Office Trust.

Rundle says the campaign provided a "rare opportunity to acquire a strong commercial investment".

“The property has been occupied by Westpac since its construction in 1997 and their further commitment to a long-term lease in 2007 clearly demonstrates the building’s strong fundamentals.

Laycock says the precinct is an important commercial hub incorporating the Westpac call centre, Florey research and development building and the major southern districts police centre.”