This article is from the Australian Property Journal archive
MELBOURNE-based private real estate investment company VIMG is selling its Eastpoint Plaza Perth CBD office tower, taking advantage of the current market cycle moment.
Eastpoint Plaza at 233 Adelaide Terrace is an 11-storey CBD office tower with more than 11,280sqm NLA and 99 car bays, with expansive floor plates via both its Terrace and River elevations and views of Swan River from all upper floors.
Sean Flynn, Nigel Freshwater, Simon Storry and Kate Low from JLL have been exclusively appointed to sell the property via an international expressions of interest campaign, on behalf VIMG.
The tower has undergone an extensive refurbishment since 2021, with upgrades to its entrance, lobby, lift foyers, bathrooms and end-of-trip facilities.
“In addition to the important work that’s been undertaken to deliver overall building amenity, the heavy lifting has also already been done across the now limited number of available tenancies within the building, with Level 6 featuring an impressive full-floor spec fit-out across 1,050sqm and the balance, much smaller spaces featuring either partial spec-fit-out or warm shell refurbishment,” said Freshwater, senior director of capital markets – WA at JLL.
“In essence, Eastpoint Plaza is tenant-ready with a variety of spaces and outlooks available, and not surprisingly, there are currently several tenant prospects circling the building, which is likely to see the building head towards 100% occupancy in the not too distant future.”
Eastpoint Plaza has a fully leased net income of just under $5.3 million per annum and built-in rental growth via annual fixed reviews.
“Eastpoint Plaza has recently generated excellent leasing momentum with about 33% of office space in the building having been either newly leased or renewed since 2022. Another strong indicator of support for the precinct is the recent announcement that another quality building nearby, 226 Adelaide Terrace, is now 100% occupied,” said Flynn, senior director of capital markets – WA at JLL.
“It’s pleasing to see the diversity of tenant mix with the buildings occupancy profile reflecting leading sectors across the WA economy including mining and resources, State and Federal government, engineering, legal and professional services.”
Eastpoint Plaza sits within walking distance of the CBD’s retail malls and Elizabeth Quay and benefits from its proximity to Perth’s legal precinct.
“Australia continues to be a high priority as an investment destination for offshore capital. The macro-economic fundamentals driven by one of the highest population growth outlooks amongst advanced economies from overseas migration and international student inflow attracts offshore capital to the Australian commercial real estate market,” said Kate Low, head of international capital at JLL, ANZ.
“The strong long-term prospects illustrated by the WA economy coupled with its geographical relationship with major trading partners such as India, Malaysia, Indonesia and Singapore have placed renewed focus on Perth as an investment destination for buyers from these markets, Japan and further afield.”
While Storry, executive director of capital markets at JLL Australia, noted the strength of WA’s economy, which is supported by a booming resource sector and is currently the only state or territory with a triple-A credit rating from both Moody’s and S&P Global.
“Importantly, the State’s booming economy is reflected in the Perth CBD office market, which has consistently outperformed other capital city CBD office markets by delivering the nation’s strongest reduction in vacancy, ‘return-to-work’ rebound and net office absorption outcomes in the last 12 months, and an impressive 3.8% net effective rental growth over the same period,” added Storry.
Over 2023, the Perth CBD was the strongest performing office market in the country, recording 75,400sqm of net absorption across the 12 months, with Perth’s headline vacancy tightening to 17.3%, its lowest level since early 2015.
The international expressions of interest campaign for Eastpoint Plaza is scheduled to close on 11 April 2024.
