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Fortius, Irongate acquire Rundle Place for $210 million

Property investor Fortius and ASX-listed company Irongate Group have acquired Adelaide shopping complex Rundle Place for $210 million from its previous owner, The Blackstone Group.

“The acquisition demonstrates our confidence of the value proposition in this transaction and we’ll again roll the sleeves up to achieve our vision,” said Sam Sproats, Fortius chief executive.

“There is resilience in the retail sector and it’s bouncing back quickly, supported by an overwhelming amount of investor interest we have received.” 

The acquisition includes Grenfell Street Carpark, which features seven levels of 500 car spaces connected to Rundle Place, and has a current passing income of 5.8 per cent.

“Rundle Place is a landmark asset and has been acquired by the Irongate Templewater Australia Property Fund,” said Graeme Katz, Irongate Group chief executive.

“The acquisition of Rundle Place is another example of our focus on strong property fundamentals. Our wholesale funds management program allows us to take advantage of these kinds of deep value opportunities and we look forward to working with Fortius on unlocking further value.” 

South Australia has only 2% of Australia’s Covid-19 cases so the local economy is reopening ahead of expectations. And, according to McVay Real Estate managing director Sam McVay, the growth of Adelaide is witnessing an increase in interest “off the back of a $5 billion government project spend, zero stamp duty regime and rapidly developing CBD”. 

Property company Blackstone Group bought Rundle Place and the office tower at 80 Grenfell Street for $400 million in early 2016. Rundle Place has an Apple store, the Adelaide City Library, Coles supermarket and more than 50 specialty shops.

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