This article is from the Australian Property Journal archive
RG Property has made a counter-cyclical play, picking up a five-level building in West Perth with a high vacancy rate for $20.3 million, and adding to a run of local groups buying office assets in their home state.
The 3,641 sqm building at 76 Kings Park Road sold with 24% of its office space empty, and is anchored by DownUnder GeoSolutions. It has a fully leased net income estimated at around $1.53 million per annum.
The property occupies a 2,358 sqm corner site with frontage to Thomas Street and has 107 parking spaces.
Vendor FES Super had owned the property for more than 18 years.
Savills agents Nick Charlton, Barney Dear and Chas Moore marketed the property.
Qube Property Group and Dorado Property have just sold the seven-story Binary 1101 Hay office building in West Perth for $16.57 million to a private Western Australia-based company. The 2,510 sqm building is on a 932 sqm site with 27 parking bays and has 93% occupancy to five tenants, including oil and gas contractor Saipem.
In a separate deal, another WA company, fund manager Warrington acquired the eight-level, 4,164 sqm 179 St Georges Terrace building in the Perth CBD in an all-cash deal for $18.75 million. It will look to spend up to $7 million refurbishing the B-grade asset that major tenant Rio Tinto recently vacated, leaving 70% of the building empty.
Recent deals have seen US giant Blackstone offload the empty 8 St Georges Terrace building to Quintessential Equity for $9.25 million, after paying $24 million for the eight-level, 4,586 sqm building in 2014.
Blackstone followed that up with last month’s sale of ENI House at 226 Adelaide Terrace, in the eastern part of Perth’s CBD, for $86 million to Primewest. While Blackstone sold this asset with full occupancy, the sale price again reflected the hit taken by Perth’s office market over the past several years. ENI House had been acquired by the South Australian Motor Accident Commission in 2011 for what was then considered to be a bargain figure of $103 million.
Australian Property Journal
