This article is from the Australian Property Journal archive
LENDLEASE and Realside Financial have jointly purchased Brookfield’s 108 St Georges Terrace A Grade commercial tower in the Perth CBD for $339.75 million.
Located on a prime site on the corner of William Street, 108 St Georges Terrace comprises 38,332sqm of net lettable area across 51 levels in the heart of Perth’s CBD.
Developed by businessman Alan Bond in 1988, the building was – as at May this year – 87% occupied with a WALE of 3.6 years and tenants including global mining and metals company South32, ASX-listed financial services firm Pioneer Credit, Asia’s third-largest office space provider The Executive Centre, and global law firm Norton Rose Fullbright.
The property is also complemented by the three-storey heritage-listed Palace Hotel, with th e 1897-built building proving offices, café, restaurants and several conference facilities.
Brookfield has spent $110 million in whole-of-building refurbishment investment over the last decade.
“There are limited buildings in the Perth CBD of such quality, location and amenity to that of 108 and we are truly excited by this acquisition. Realside’s purchase of 108 is an example of our approach to seeking out opportunities that provide our clients access to core assets that provide attractive returns,” said Mark Vonic, founding partner at Realside Financial Group.
“The acquisition of an asset of this calibre is reflective of the team’s approach, patience and discipline. We have been delighted by the positive response from our investor base.
Lendlease signed contracts to acquire the property through its Real Estate Partners 4 fund (REP4).
“This is a great acquisition for the REP4 portfolio. In line with our recent Blue Tower acquisition in Brisbane and Collins Street acquisitions in Melbourne, we’re keen to enhance 108’s ground plane and end-of-trip facilities, along with creating quality fitted suites to deliver a superior product for current and future tenants,” said Paul Snushall, head of private equity at Lendlease Investment Management.
Though office deals less impacted by the economic landscape, falling by just 10% in third quarter compared to a year ago.
