Actively managing our assets: 95 Grenfell Street, Adelaide - Cromwell Funds Management
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Home Actively managing our assets: 95 Grenfell Street, Adelaide
May 1, 2024

Actively managing our assets: 95 Grenfell Street, Adelaide

Chesser House at 95 Grenfell Street, Adelaide, was acquired by Cromwell Funds Management in April 2022 for $81.35 million, on behalf of Cromwell Direct Property Fund (DPF) unitholders. The 11-storey building has a total net lettable area of 11,155 sqm, with rental income underpinned by blue-chip building users, as well as federal and state government tenants.

Leasing Activity

A total of four new leases have been signed for Chesser House in the last nine months (to 1 April 2024), including a significant state government tenant.

 

In-building amenity

As part of Cromwell’s approach to asset management, the performance of each property is continually appraised – relative to market demand; possible future uses; socio-demographic profiles; and growth corridors. Understanding the property cycle, future capital works, and the demand for continuing occupation underpins every asset management and refurbishment strategy across our business.

The most recent tranche of building works at Chesser House was completed in September 2023. These works involved installation of a full-floor LED lighting, ceiling finishes, floor finishes, and services upgrades; a lift lobby refurbishment on Level 9; and a brand-new end-of-trip facility with a dedicated bike storeroom . Consequently, these works resulted in two new leases being signed.

In addition, a 93KW solar panel system was installed, which generates 17% of the total base building power. The property has maintained its NABERS Energy Rating at 5.0 Stars, with Green Power at 22.5%. The NABERS Water Rating is currently 4.5 Stars.

Across our business, Cromwell’s Asset Management team continues to take shifting tenant requirements into consideration, such as those post COVID-19, when designing these spaces. The recent focus has been on designing breakout areas and collaboration zones in addition to providing quiet rooms to those wishing to concentrate on tasks or avoid distraction.

End-of-trip facilities

The end-of-trip design utilised a neutral colour palette accentuated by premium finishes that complement the recently completed building lobby. An indigenous artwork called “Waves of Hope” by Samantha Webster was also commissioned via Wall Trade.

A considerable number of bike racks were installed by market-leading bike room creators, Five at Heart – included to meet the increasing demand of people cycling to work.

95 Grenfell Street tenants awarded Cromwell an overall satisfaction level 4% higher than the Tenant Survey Index

 

Keeping tenants satisfied

Measuring and understanding tenant satisfaction levels is core to Cromwell’s tenant retention strategy, and is critical in helping to maximise rental yield – which translates to greater investor returns.

Future Forma – an agency specialising in the independent evaluation of tenant–customer experiences across individual assets and portfolios – was engaged by Cromwell Property Group to conduct annual tenant surveys, commencing in August 2023.

75% of survey recipients at Chesser House provided responses to the survey. A five-point ratings system was used for the survey:

Responses were marked against the Tenant Survey Index (TSI), which comprises of 350+ investment grade office building surveys throughout Australia, and is calculated as a rolling four-year average to ensure that data remains current.

Property Management Team Building services Overall score
95 Grenfell Street 90 80 85
Tenant Satisfaction Index 84 79 81

As seen in the table above, 95 Grenfell Street tenants awarded Cromwell an overall satisfaction level 4% higher than the Tenant Satisfaction Index.

 

Property profile

The property is located in the heart of the South Australian capital and provides direct linkages to major transport routes, as well as connectivity to Adelaide’s premier retail precinct, Rundle Mall, and the grassy Hindmarsh Square. The parallel Pirie Street has also emerged as a leading entertainment, food and beverage destination for locals and visitors to the City of Churches.

The property façade was last upgraded in 2017 and features a steel structured lightbox fitted with contemporary LED lighting coupled with translucent panels. The lighting can be programmed remotely to adjust the colour, luminosity, and function of the lightbox, providing a striking visual appearance.

Inside the building, a double-height entrance lobby gives way to a working lounge and café, as well as a 7-metre feature green wall, fitted with engineered grow lights and an irrigation system. The foyer space provides quiet, sophisticated meeting spaces for tenants to use.

Key statistics:

91.5%
Occupancy as at 31 March 2024
Office
Sector
11,155 sqm
Net lettable area
5.0-Star
NABERS energy rating
4.5-Star
NABERS Water rating
About Cromwell’s Direct Property Fund

The Cromwell Direct Property Fund is comprised of a quality portfolio of nine commercial property assets – including 100 Creek Street – with a long, 4.2-year weighted average lease expiry (WALE) and 53% of income sourced from government and listed tenants.

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