West Perth office building to fetch circa $21 million

12 September 2018

A West Perth office building is expected to collect circa $21 million when it hits the market next week, as investors continue to look for high-quality office assets in city-fringe markets.

The Robert Cann & Associates-designed five-level property at 76 Kings Park Road has a net lettable area of 3,640sq m and is 76 percent leased to a diverse range of tenants.

Savills Australia’s Nick Charlton, Barney Dear and Chas Moore have been appointed to market the property via expressions of interest, saying they expected strong enquiry from private and institutional investors, as well as syndicates. They are taking the property on a roadshow of Asia this month.

“We’re anticipating a broad scope of interest due to the strong yield profile on offer,” Mr Charlton said.

“With other tenants to supplement the lease to DownUnder GeoSolutions (DUG), we estimate a fully leased net income of about $1.53 million per annum.”

Mr Charlton went on to say that the strong tenant profile and solid level of occupancy would be a key selling point, as would the commitment of the current long-term owner.

“Having been under the same ownership for more than 18 years, the property has benefitted from this continuity and stability, and there have been significant upgrades and investment within the building fabric, including the communal areas, lifts, electric transformers and building controls,” he said.

“76 Kings Park Road benefits from its prominent corner location on the main thoroughfares of Kings Park Road and Thomas Street.

“This visibility, coupled with its excellent car-parking provisions for 107 vehicles, means that the asset is attractive to its current occupiers, as well as potential tenants. In addition, the layout of the floors is conducive to be occupied in part or as a whole.”

Mr Dear said his team had received consistent enquiries into the tightly held West Perth office market in recent months, with vacancy rates dropping from 16.7 percent in December 2017 to 15.8 percent in June 2018.

“The re-centralisation of tenants from suburban locations and recent stock withdrawals in West Perth will continue to drive this trend through the remainder of 2018,” he said.

“This uptick in leasing demand is flowing through to transaction activity, as local and offshore buyers increasingly adopt a positive view on the precinct.

“Between 1 Havelock Street and 18-32 Parliament Place, which are both in due diligence, and the recent sale of 87 Colin Street, we are on track to see more than $70 million of property transact in West Perth in the third quarter of 2018.”

Expressions of interest for 76 Kings Park Road close Friday, October 12 at 3pm.

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Key Contacts

Nick Charlton

Nick Charlton

Associate Director
Capital Transactions

Savills Perth

+61 (0) 8 9488 4120

 

Barney Dear

Barney Dear

Manager
Metropolitan & Regional Sales

Savills Perth

+61 (0) 8 9488 4116