Corval Partners Sells 26 Flinders Street in Adelaide for A$50 Million After Eight-Year Hold

Corval Partners (Corval) has sold 26 Flinders Street in Adelaide, South Australia, for a gross sale price of A$50.0 million, the firm announced on Oct. 30, 2026. The sale follows an eight-year asset management and repositioning strategy for the office property.

Corval Partners Sale Follows Eight-Year Repositioning

Corval acquired 26 Flinders Street for A$36 million in May 2018. The A$50 million sale price represents a gross increase of A$14 million, or 38.9%, over the acquisition price, before transaction costs and capital expenditure.

The buyer was Exceed Capital. The sale reflects a net passing yield of 7.76%, implying annual net income of approximately A$3.88 million.

Corval said the property underwent a comprehensive transformation during its ownership, including significant upgrades to building amenity, infrastructure, sustainability and tenant facilities. Capital improvements totalled approximately A$10.7 million.

Through proactive leasing and asset management, Corval said it strengthened the property's tenant profile, improved its environmental credentials and achieved approximately 30% growth in market rents. The firm described the sale as reflecting its disciplined approach to unlocking value through active asset management and strategic repositioning.

26 Flinders Street Tenancy and Occupancy

The Adelaide office building is 91% occupied across 24 tenants. Tenants include Aussie Broadband, Angas Securities, JCDecaux, Samsung Electronics, Stillwell Management Consultants, Employers Mutual and SeaLink.

Adelaide Office Market Context

The transaction comes as Adelaide CBD office data presents a mixed picture. JLL reported CBD vacancy of 14.5% in the second quarter of 2026, its lowest level since the first quarter of 2020, with prime vacancy at 13.6%. CBRE reported overall CBD vacancy of 16.3% in July 2026, up 0.8 percentage points over the prior half-year.

Adelaide CBD office stock reached approximately 1.59 million square metres in July 2026, up 26,809 square metres year over year. JLL recorded 21,700 square metres of rolling annual net absorption, although quarterly absorption slowed to 500 square metres in the second quarter.

The 7.76% net passing yield on 26 Flinders Street is broadly in line with current Adelaide CBD pricing. CBRE reported prime midpoint yields of 7.8% and secondary midpoint yields of 9.5% in the third quarter of 2026, while JLL reported average prime yields of 7.75% in the second quarter. South Australian market data placed prime Adelaide office yields broadly between 6.5% and 8.0% in mid-2026.

Adelaide CBD Investment Activity

Nine Adelaide CBD office sales totalled A$330.18 million in 2026 year-to-date, exceeding the A$170.25 million recorded across 10 transactions in 2025. Adelaide tenants have increasingly favoured newer or refurbished premises, while older buildings have faced weaker demand.

Corval's strategy at 26 Flinders Street focused on upgrading amenity, infrastructure, sustainability and tenant facilities alongside leasing activity. The sale of 26 Flinders Street adds to the year's Adelaide CBD office transaction volume.

Sources

Corval Partners media announcement, "Corval Sells 26 Flinders Street Adelaide," Oct. 30, 2026: https://corval.com.au/corval-sells-26-flinders-street-adelaide/