Terrace Properties has offloaded a premium office tower in the Perth CBD for $64.2 million, marking the city’s first major commercial property deal for 2016.
Situated in the heart of Perth’s premier business hub, the A-grade office tower at 190 St Georges Terrace comprises 9,362sqm of office space across 12 levels.
Positioned on a 1,832sqm site with more than 30 metres’ frontage to St Georges Terrace, the building is occupied by a number of reputable tenants.
CBRE’s Andrew Woodley-Page, in conjunction with CBRE’s International Investments team of Mark Hansen and Rick Butler, negotiated the off-market sale of the asset to Credit Suisse Real Estate Investment Management (REIM).
Mr Woodley-Page said strong investor demand for quality commercial assets underpinned the deal.
“Boasting an occupancy rate of 95 per cent, the asset offered an opportunity to acquire a secure investment in one of Perth’s most sought after business locations,” Mr Woodley-Page said.
“The property’s close proximity to Perth’s newly developed precincts was also a drawcard.
“In addition to providing easy access to major freeway networks and retail strips on Hay and Murray streets, 190 St Georges Terrace is well positioned to take advantage of new developments underway across the city, including Elizabeth Quay and the new Perth City Link.”
Mr Hansen, who in conjunction with the CBRE team brokered the largest office sale in Perth in 2015, the Australian Tax Office, said both domestic and international buyers were continuing to target investment opportunities that offered an attractive mix of fundamentals, including strong covenants and proven CBD locations.
“Credit Suisse REIM is well accustomed to the Perth market, having managed 45 St Georges Terrace through a significant refurbishment program, repositioning the asset which now sits fully leased.”
“This sale is further testament to the strength of the Australian investment market and demonstrates that sophisticated investors are actively targeting Perth, with the risk adjusted return relative to eastern seaboard markets clearly becoming increasingly attractive,” Mr Hansen said.
Richard Butler added: “Various groups are recognising the counter-cyclical opportunities that the Perth CBD office market affords, and we expect more sales to be announced and opportunities to come to the market through 2016.”