University of Adelaide divests from Thebarton Campus to fund new medical building

The University of Adelaide has sold its Thebarton Campus to a group of Adelaide private investors to raise funds for a new medical, dental and nursing building.  

The 3.99 ha property, which was marketed through expressions of interest, was bought by Pep Rocca of Australasian Property Developments for an undisclosed sum.

The deal was brokered by Colliers International’s Paul Van Reesema, Alistair Mackie and Paul Tierney. Van Reesema said the sale price was in line with expectations.

Thebarton Campus is occupied by multiple third party tenants, including the university for several of its faculties and records storage. The university’s Vice-Chancellor and President Warren Bebbington said the university would continue to occupy various tenancies following the sale, by way of lease backs on commercial terms. 

“The sale was part of our divestment plan to fund our new medical, dental and nursing building, now nearing completion next to the new Royal Adelaide Hospital,” Prof. Bebbington said.

The portfolio was offered in four ‘super lots’ or as a whole, according to a media release. Thebarton Campus close to the Adelaide CBD and affords solid cash-flow opportunities and development potential given its Urban Corridor zoning, and building height limit of six levels.

“This sale represented a unique opportunity to acquire a major inner metropolitan infill land holding,” Van Reesema said.

With 28 buildings providing extensive accommodation, the portfolio offers significant holding income opportunities for a purchaser whilst planning and implementing a redevelopment project.