This article is from the Australian Property Journal archive
ELANOR Investors Group has acquired the Workzone West building in Perth’s CBD for $125.25 million from a Charter Hall fund, taking its owned and managed assets to more than $1.25 billion.
The modern building at 202 Pier Street has a net lettable area of 15,602 sqm, and has campus-style floorplates of 2,443 sqm, end of trip facilities, ground floor food and beverage offerings and 139 parking spaces.
Its entire office component is leased to CBP Contractors, formerly Leighton Contractors and Thiess, which is a subsidiary of ASX-listed infrastructure, mining and services company CIMIC Group Limited that has a market capitalisation of more than $13 billion. The lease has 7.4 years remaining of the original 12-year deal.
Charter Hall held the building in its Charter Hall Direct WorkZone Trust. WorkZone West is one of two office buildings – the other being WorkZone East – developed by Charter Hall in 2013. WorkZone East was sold last year to CorVal Partners for $68.25 million.
Elanor has been active in the investment market over recent months. In March, it picked up44 the 1.237-hectare campus-style Campus DXC property in Adelaide’s Felixstow for $35 million, and paid $43.75 million for the Belconnen Markets site in Canberra with plans to redevelop to 30,000 sqm site into a mixed-use precinct.
It followed the acquisitions with the divestment of Shorter House for $30 million at a 4.3% yield, having bought it at an 8.8% yield in 2014, and more recently it sold off a mixed-use development site Merrylands for $36 million, double its book value.
Elanor’s co-head of real estate, David Burgess, said the property is a high-quality office building located in an emerging fringe CBD location, offering some of the largest floor plates in Perth.
“We are pleased to have made this investment in the recovering Perth commercial real estate market,” he added.
The Elanor Commercial Property Fund will invest approximately 51% of the syndicate equity alongside new capital partners. The acquisition provides significant strategic benefits for ECPF.
“The acquisition not only improves the fund’s geographic diversity and tenancy mix, but also increases the portfolio’s weighted average lease term to six years and the fund’s occupancy to 98%, while maintaining ECPF’s strong income yield,” Burgess said.
“This investment represents excellent value for our capital partners and highlights Elanor’s ability to originate and execute on high investment quality assets across the country,” CEO Glenn Willis said.
Settlement of WorkZone West is expected to occur at the end of July 2018.
Meanwhile, BlackRock is believed to be close to selling off its A-grade, fully leased Optima Centre in Perth’s Herdsmen Business Park for reported figure of around $130 million.
The two-building complex has 16,116 sqm of office space on a 9,459 sqm site.
Australian Property Journal
