This article is from the Australian Property Journal archive
BGC Group is moving to sell the aptly named BGC Centre in core of Perth’s CBD, looking to capitalise on heightened investor demand, which is expected to sell for more than $100 million.
28 The Esplanade is a 20-level office tower comprising over 15,000sqm of A-grade office space, situated opposite Elizabeth Quay, where oil and gas giant Chevron recently sold and leaseback to Brookfield, its 30-storey, 52,000sqm Chevron Tower development.
It is expected to fetch in excess of $100 million.
The building provides 17 floors of office accommodation plus a ground floor retail and three levels of basement parking, with a total of 179 bays car park.
JLL’s John Williams, Nigel Freshwater and Tom Nattrass are selling the asset by expressions of interest closing on 20 June.
Williams said the building will be attractive to a broad range of investors. 87% occupied, well above the CBD average and has a sought-after WALE of 2.3 years which provide ability to unlock income growth in the near-term.
“The opportunity comes to the market at a pivotal point in the Perth CBD property cycle which has recorded buy diazepam online uk 2013 over 51,000 sqm of positive net absorption in the last 12 months with research forecasting this trend to continue” he added.
Freshwater said the asset has benefitted from significant capital expenditure in recent years, including new additional end-of-trip facilities, full lift upgrade and refurbished plaza, foyer and conference facility.
“There remains scope for significant value-add opportunities for the incoming buyer, including potential for additional development opportunities for residential or hotel use, subject to obtaining necessary approvals,” Freshwater said.
Nattrass said Perth value proposition is now very compelling for counter-cyclical investors with the Perth-Sydney prime equivalent yield spread currently sitting at 200 basis points, well above the long term average.
A recent Savills report found the yield spread between Sydney and Perth has widened to at least 170 bps.
“The recent level of demand experienced for Perth office assets clarifies. Perth office assets are highly sought after by investors, confident that the CBD office market is improving rapidly.
“The overwhelming sentiment and consensus is that Perth offers great value plus real prospects for strong rental and capital growth.” Nattrass concluded.
Australian Property Journal
