Petrol king turned property magnate Nick Andrianakos has consolidated his family’s commercial property footprint in Adelaide, acquiring a Flinders Street office tower from Cbus Property for $175 million.

The purchase of 50 Flinders Street, on a yield of around 6.5 per cent, is the biggest office investment so far for the family company, Nikos Property Group. It stands next to Santos House at 60 Flinders Street, which Nikos bought two years ago from Lendlease for $101.35 million. Bridges link the two buildings.

The 15-storey building at 50 Flinders Street comprises around 22,000sq m and is fully leased, with its anchor tenant being the People’s Choice Credit Union. The building was developed by Cbus Property in 2015 with credit union taking a pre-commitment.

“One of the attractions for our group of 50 Flinders Street was the fact that it has been developed and owned by Cbus and therefore has been very well maintained and managed from day one,” said chief executive Theo Andrianakos.

The Nikos group is reworking the ground floor of the building next door at 60 Flinders Street with new end of trip facilities, and a redesigned lobby with a new café. It is also working with Santos on refurbishing its offices after the company agreed to extend its lease until 2033, Nikos investment manager Paul Lachal said.

The latest acquisition was brokered by Knight Frank’s Guy Bennett.

The second Adelaide acquisition is the latest instalment in a property investment strategy employed by the family company over the last few years. In late 2016, Mr Andrianakos, the founder of Milemaker Petroleum, sold the retail fuel business assets in Victoria to Caltex in a $95 million deal, while retaining all the sites on long-term leases to Caltex.

Soon after the petrol king swooped on a prime commercial tower on Melbourne’s St Kilda Road for $70 million, acquiring it from Singapore’s International Healthway Corporation. Nikos Property owns another two towers along St Kilda Road as well.

The family’s investment arm has branched further afield too, with its first Adelaide acquisition in late 2018. In January this year Nikos Property went north, buying an office complex on the fringe of the Brisbane CBD for $85.2 million.

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