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News release

Perth

EOI increases focus on St Georges Terrace investment market

8 level 4554sqm fully tenanted office with 6.2 year WALE


PERTH, 18 September 2012 – Expressions of interest have been called for one of St Georges Terrace’s more distinctive mid-sized east end office buildings.

The eight level property has been placed in the hands of joint selling agents Jones Lang LaSalle and Savills.
 
Built in 1987, the 4554sqm (NLA) property is fully let to RSM Bird Cameron until November 2018 with a further two five year options at an annual passing net rental of $2,352,147 from 24 November 2012.
 
Located at 8 St Georges Terrace opposite the Duxton Hotel and close to leafy Victoria Avenue, the building occupies an 873sqm site with typical floor plates of about 600sqm and 17 upper ground level car bays accessed from a rear right of way to Hay Street.
 
Head of Sales and Investments at Jones Lang LaSalle, Nigel Freshwater said he anticipated strong local and eastern states’ investor interest in the distinctive curved façade building, particularly from private investors and investment syndicates.
 
“The property is probably one of the most strongly tenanted with an attractive WALE of 6.2 years along with fixed four per cent rental increases on a low average passing office rent of $478 per square metre, which is below market,” he said.
 
Mr Freshwater added “the property is located within 500m of the State Government’s Elizabeth Quay project on the Perth Waterfront and stands to benefit from a number of major CBD projects nearby including the soon to be redeveloped Old Treasury Buildings, the new City Library project on the old Law Chambers site and the anticipated redevelopment of the May Holman Centre at 32 St Georges Terrace.
 
“Office space pressures in the central and western ends of the CBD are increasingly lifting the investment appeal of well tenanted quality properties which, coupled with the affordable entry price at 8 St Georges Terrace, will add significantly to its appeal to investors,” he said.

Mr Freshwater’s comments were supported by Miles Rowe, Savills Divisional Director of Sales and Investments who noted that about half of the 100,000sqm of office space expected to be created in Perth over the next two years was already committed.
 
 “We’ve seen net absorption of almost 120,000sqm of office space, or five times the 20 year average, in the 12 months to June this year and although this rate somewhat ‘out-performs’, there is no medium term reason to believe that it will continue strongly over the next two to three years,” said Mr Rowe.
 
Mr Rowe said that almost $850,000 had been invested in significant upgrades to the building services over the last two years, including lifts, air conditioning and building management control systems while the building itself offered a marbled entry foyer, views to the river and end-of trip facilities and bicycle storage area.
 
Expressions of interest close at 4.00pm (WST) on 11 October 2012.

 

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