This article is from the Australian Property Journal archive
AN inner Perth Centrelink building has been sold off for $8.75 million by the six local country families who originally built the premises for the government program more than 30 years ago.
Two local investors bought the single-storey 2,352 sqm building at 117 Shepparton Road on a yield of 6.66%.
It has 84 undercover car parks and 14 visitor car parks on 4,082 sqm of land directly behind the Woolworths-anchored Victoria Park Central Shopping Centre, the Albany Highway retail precinct and the Town of Victoria Park’s council office.
Tony Delich of Knight Frank, who managed the sale, said the property appealed to owner occupiers, investor and developers.
“The buyers saw the potential of very good holding income with a view to develop the large site located at the highest point in Victoria Park.
“The local council, the Town of Victoria Park, is currently reviewing their planning scheme which will allow higher-density mixed-use development in the town centre which includes this site.”
The state government is intending to streamline development approvals to encourage residential infill development.
“In the meantime the buyer can take advantage of a quality covenant providing solid income,” Delich said.
“Given the prominent location and occupancy history we believe Centrelink will remain as a tenant for the short term at least for the next four years but likely longer given location and history of occupancy,” Centrelink has exercised its option of two years to extend its current lease and has a further two-year option.
“At the time the development market should have stabilised in terms of supply and material constraints and labour shortages, making a development on the site significantly more feasible.”
