This article is from the Australian Property Journal archive
IN a slow year for commercial real estate transactions, it has taken until November for the first major Perth CBD office deal to be negotiated, exchanged and settled – with Stanley College buying the mostly-vacant 10 William Street for $21 million.
The six-storey building was listed for sale during winter by three private overseas vendors in July through Knight Frank agents Greg McAlpine, Tony Delich and Zach Schreier.
Office sales slumped by 77% year-on-year in the September quarter, according to MSCI Real Assets, as overall commercial property deals fell to their lowest third quarter level in more than a decade. Pricing is of course the major obstacle for deal flow this year, MSCI head of Pacific real assets research, Benjamin Martin-Henry said.
10 William Street has 4,248 sqm of net lettable area and sits on a 1,560 sqm site, with secure open parking at the rear for up to 30 cars. It was billed as a potential redevelopment and repositioning play, with 75.5% occupancy and a current income of $1,356,524 per year net.
Stanley College president Alberto Tassone said the purchase of 10 William Street was a great opportunity to secure a long-term home in the Perth CBD, as well as a strong investment asset for the future of the College.
“We took a long-term view with this acquisition which allows Stanley College to continue delivering training and education to international and local students which will create job-ready graduates with skills, which are in high demand in WA such as nursing, community care and ICT.”
Chair of Stanley College, Suzanne Ardagh, said, “This acquisition for Stanley College contributes to opening up a new era of vibrancy for the city by bringing students from around the world to the Perth CBD – not only to study, but to live, work, play and contribute to the economy which is part of the initiatives and vision promoted by the Lord Mayor and the City of Perth”.
McAlpine said there was strong buyer interest during the campaign from both investors and owner occupiers, but enquiries were particularly strong from the latter.
“The majority of the building has a 9B classroom certification, and this point of difference provided an opportunity for education users, from which interest was solid,” he said.
Elsewhere in Perth, Ascot tipped a 12-storey A-grade office building opposite the Elizabeth Quay precinct, and occupied by state government tenants including Development WA, to the market with expectations of around $85 million.
