Brisbane-based Exceed Capital has struck a $50m deal to acquire an Adelaide office tower, and is looking to raise $36m from investors to fund the purchase.
The building, at 26 Flinders St, is currently home to tenants including ASX-listed transport and tourism group Kelsian, Angas Securities, Aussie Broadband and BlueScope Steel.
It marks Exceed’s second play in the Adelaide office market following its $25.5m acquisition of a 19-level tower at 19 Grenfell St in 2025.
Managing director and co-founder Vaughan Hayne said the fund manager was attracted to Adelaide’s “strong and diverse economy”, adding that the capital raising had already generated a “strong initial uptake”.
“When we completed our first acquisition in Adelaide’s CBD in late January 2025, I said that it wouldn’t be our last. Fast forward to 2026, and we’re now seeing more investors looking to diversify away from residential property,” he said.
“When complete, a second acquisition in Adelaide will add to Exceed Capital’s current nationwide portfolio of 17 assets, which we’ve successfully accumulated over the past decade of doing business.
“Our investment thesis has remained unchanged – buy well, manage actively and stay aligned with our investors. Adelaide certainly aligns with this approach, particularly given it has the highest employment growth of all Australian capital cities and long term demand for quality office space from the state’s defence, technology and resources sectors.”
The 16-level tower features 10,217sq m of office space – currently 91 per cent leased – and 68 basement car spaces.
Previous owner, Corval, undertook a $10.7m refurbishment of the building before its sale, including mechanical upgrades, improvements to lifts and bathrooms, lobby upgrades and new ground floor end-of-trip facilities.
Mr Hayne said Exceed planned to establish a capital expenditure fund for remaining “minor works and value-add opportunities, such as a courtyard plaza and future development parcel”.
The fund manager recently completed a multimillion-dollar refurbishment of its other Adelaide building on Grenfell St, including a new revamped lobby space.
Exceed is promising investors 8 per cent annual returns for its latest purchase which is expected to settle in October.
The deal was brokered by Knight Frank’s Max Frohlich and Ryan Mills, and CBRE’s Ian Thomas and Alistair Laycock.