The owners of a prime CBD nine-storey building have gone into receivership as commercial tenancies dry up.
KordaMentha were appointed Receivers and Managers of Sydney-based family company Melis Developments Pty Ltd on Tuesday.
The company’s main asset is 100 Pirie Street, Adelaide – a nine floor commercial building completed in 1989 mainly tenanted by Government tenancies.
“The company purchased the building five years ago and its was fully tenanted,” Korda Mentha’s Chris Powell told InDaily.
“Over recent times there have been a number of tenants leave and few come in, so it now has a 30 per cent vacancy level.”
Its understood the building was placed on the market to resolves an asset carve-up within the family, but no sale was evident.
It’s now been withdrawn from the market while receivers assess the need for building improvements and finalise lease negotiations with existing and prospective tenants.
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Powell said the property will be prepared for sale over the coming months with the intention to re-introduce it to the market for sale in early 2014.
“100 Pirie Street is a landmark A grade building and it has enormous upside in terms of leasing income with only modest capital improvements required,” he said.
The building is still home to the Australian Securities and Investment Commission, the Department of Environment and Natural Resources and the Residential Tenancies Tribunal.
