Elanor Pays $35m for Adelaide Office Building

ASX-listed Elanor Investors Group has acquired a 1.237-hectare commercial asset for $35 million in one of Adelaide’s largest metropolitan office buildings.

Elanor paid $35 million to acquire the campus reflecting an initial yield of 7.9 per cent per annum.

The asset known as Campus DXC is located at 196 OG Road, Felixstow, Adelaide. The building itself provides office space in a campus-like layout and 33 car parking spaces across 6,288 square metres of net lettable area.

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This sale marks the third time the property has changed hands in five years.

The property is wholly-leased to DXC Technology Company until August 2025, with two five-year options. DXC is a US$30 billion global IT services company which was formed from the merger of Hewlett Packard’s Enterprise Services business and CSC in April 2017.

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The acquisition is the third asset to be acquired by the Elanor Commercial Property Fund, and has improved the group’s portfolio weighted average lease term to five years and increasing the Fund’s occupancy to 97 per cent.

The acquisition increases Elanor’s owned and managed assets to approximately $1.1 billion.

Settlement is due in April 2018.