This article is from the Australian Property Journal archive
GDI has purchased car parks in the Perth CBD from Perron Group for a combined $68.5 million, on a circa 5% passing yield.
The properties include a 10-level 839-car capacity site at 419-431 Murray Street and a six-level 601-car capacity site at 301-311 Wellington Street.
“Both carparks are being bought following reduced occupancy and revenues from COVID-19 related lockdowns and border closures. We anticipate an improvement in both occupancy and revenue as the border reopens,” said Steve Gillard, managing director at GDI.
The concrete framed Murray Street carpark was purchased for $38.25 million and was independently valued at $38.50 million.
The 1984-built site sits on the western end of the CBD with frontage to Murray Street and access via right of way to Hay Street and offers easy access to the Kwinana Freeway network, while also sitting within close proximity of the Hay Street Mall precinct, as well as leafing hotels and office buildings.
Meanwhile the 1988-built Wellington Street carpark is also concrete framed and was purchased for $30.35 million and independently valued at the same price.
“Both carparks also offer medium term change of use potential, given a significant component of the acquisition price is land value. We would be interested in reviewing any further carpark acquisitions that offered similar income, growth and change of use potential,” said Gillard.
Sitting at the south-east corner of Wellington and Pier Streets, the site offers easy access to the Graham Farmer Freeway, which links to the greater Perth freeway network.
The carpark is also placed within close proximity of the Royal Perth Hospital, District Courts and the Murray Street Mall Precinct, as well as several leading hotels.
“We anticipate an improvement in both occupancy and revenue as the border reopens. We are attracted to the high cash yield the carparks offer and the forecast low capital expenditure requirements. With limited new supply of carparking in the Perth CBD, we anticipate the carparks will perform well not only in the short term but over a considerable period of time,” added Gillard.
The acquisitions will be funded by a $68.50 million increase of its principal facility, with all other terms and conditions of the facility to remain unchanged.
Earlier in the year, GDI Property Group posted its net profit for the year at $22.96 million, down significantly from $66.74 million in FY20.
The acquisition is expected to settle on or around 22 December 2021.
The assets were sold by JLL’s John William and Sean Flynn.
