This article is from the Australian Property Journal archive
AN expansive Perth CBD office portfolio has hit the market, offering potential buyers 13,700sqm of CBD office accommodation and plenty of room for future development.
The St Georges Terrace portfolio is set across four adjoining office assets providing a 5,633sqm landholding, one of the largest in in the WA capital’s city centre.
“The site is underdeveloped and therefore provides a new owner the opportunity add to the existing buildings in the medium term or construct a landmark building in the longer term,” said John Williams, head of capital markets at JLL, WA.
“Given the significance of the site at the gateway to the western end of the Perth CBD and at a high point in the city, this is a unique aspect for a CBD office investment.”
Williams and Sean Flynn from JLL have been exclusively appointed to market 251, 253, 255 & 267 St Georges Terrace collectively or with 267 St Georges Terrace sold individually with the remainder sold in one line.
251, 253 and 255 are interconnected buildings currently leased to major tenant Nine Network Australia on a 12-year term, with the tenant completing a new studio and office fit out back in 2016.
251 St Georges Terrace recently underwent a major refurbishment program completed this February.
While the other adjoining buildings were subject to recent capex works, resulting in six new leasing transactions across 2021 and 2022, totalling 3,450sqm.
The recent works comprised on lift upgrades, new end-of-trip-facilities, speculative fit outs and a new entrance at 251 St Georges Terrace that overlooks the adjoining parklands.
“The properties come to the market at a time when there has been significant improvement in the CBD office leasing market. Perth vacancy rates have generally reduced in the last three years on the back of increasing tenant demand driving further rental growth,” said Sean Flynn, director of capital markets at JLL.
The office portfolio is currently around 80% leased with a 3.21-year WALE.
While Perth has the highest vacancy rate of the country’s major CBD markets at 15.8%, confidence remains high in the market with Centuria Capital Group and MA Financial Group recently acquiring Allendale Square from Mirvac for $223 million.
“Not surprisingly, the buildings have attracted a number of recent leasing deals with others currently under negotiation,” concluded Flynn.
The expressions of interest campaign for 251, 253, 255 & 267 St Georges Terrace is scheduled to close 3 November 2022.
