This article is from the Australian Property Journal archive
COMMERCIAL transaction activity in Subiaco continues apace, with property fund manager Realside acquiring The Colonnade office and retail building for $37.85 million.
The 8,175 sqm building at 388 Hay St has a weighted average lease expiry of three years, and is on a 5,973 sqm site. The asset is anchored by NYSE-listed Fortune 500 company Newmont, ASX-listed Northern Star Resources and Goodlife Health Club.
Ray White Commercial’s Brett Wilkins, in conjunction with Nicholas Agapitos, Nigel Freshwater and Sean Flynn from JLL sold the property following expressions of interest on behalf of Hawaiian.
It had been on the market for some time with expectations of up to $50 million.
The Colonnade was developed in 1995 by Wayne Teo as a high-end fashion boutique of shops. Hawaiian bought the property in 2007 and repositioned the asset, converting the upper floors into two levels of office space and introducing a gym to the ground floor.
The property further benefits from a nine-level car park managed by Wilson Parking, together with ground floor activation along its Hay, Catherine and York Street frontages.
Wilkins said the potential offered by repositioning the retail tenancies and working the investment as part of the rejuvenation of Subiaco made the investment appealing.
“Subiaco as an inner-city suburb of Perth that has been very depressed in recent years, but a number of projects means the future for the suburb is bright.”
Redevelopment of the football oval is underway, and redevelopments of Princess Margaret Hospital and Subiaco Pavilion are on the horizon. Meanwwhile ASX-listed developer Cedar Woods is set to acquire the 1.44-hectare Wembley TAFE site, close to the redeveloped Subi Centro precinct, which is set to make way for a medium-density housing project.
JLL’s director of sales and investments Nicholas Agapitos believed astute purchasers were seeing counter cyclical value in Subiaco at present.
“The sale of The Colonnade represents investor confidence in the affluent inner-metropolitan suburb of Subiaco,” Agapitos said.
Hay Street has recently seen two historic hotels come to the market. The Subiaco Hotel at 465 Hay St has been listed for sale for the first time in more than 100 years. The Monaghan has owned the business along with the families that acquired the hotel early in the 1900s. The 122-year-old building has a restaurant and has on-site parking.
That followed the 1898-built Vic Hotel hitting the market. On a 2,000 sqm site, it comprises large bar areas, open kitchen, restaurant dining, alfresco and function space over two levels, and 54 on-site parking spaces. Now managed by Black Toms and ALH Group, the hotel underwent substantial renovations in the 1980s.
