The Perth 11-level office building at 182 St Georges Terrace for sale exclusively by Nick Charlton, Head of Institutional Sales, Knight Frank and JLL’s John Williams, Managing Director and Nigel Freshwater, Head of Sales and Investments, acting on behalf of the vendor Peakstone.

The property, which has a net lettable area of 5,030sqm, 33 secure car bays and sits on 810sqm of prime land, is expected to generate significant interest from a broad range of buyers looking to acquire a centrally located building with a St Georges Terrace address.

It is 96% leased to multiple tenants including listed corporates such as Petrofac, Yara Pilbara Fertilisers and Suvo Strategic Minerals.

Mr Charlton said he expected buyer interest to come from local and national investors, as well as private offshore buyers.

“The vendor purchased the property with just a 20 per cent occupancy, but after significant capital expenditure, hands on local asset management and a successful leasing campaign, have achieved near full occupancy,” he said.

“Buyers will be attracted to the quality of the covenants including multiple listed corporates, with a strong WALE in place, and minimal capex required in the medium term.

“The building is leased to tenants from diverse business sectors, minimising risk to income flow.

“Significantly, there have been a number of leasing deals concluded in the building in the past 18 months, which demonstrates the strength of the property in a challenging market.”

Mr Williams said the property offers investors a rare opportunity to get a foothold in a tightly held precinct of the Perth CBD.

“182 St Georges Terrace is ideally situated in the core of Perth’s business district, in a prime position on the northern side of St Georges Terrace, immediately west of King Street,” he said.

“The property benefits from close proximity to some of Australia’s largest listed companies including Woodside, BHP and Rio Tinto.

“It is also surrounded by major infrastructure, with Elizabeth Quay train station, City Bus Port and Perth Underground Station all within a few minutes’ walk and retail amenity nearby, including on the adjacent high-end King Street.”

Mr Charlton said the West Coast represented fantastic value for investors, relative to the east coast markets.

“The yield spreads continue to be attractive for equivalent assets on the eastern seaboard,” he said.

“The West Australian economy has been a stand-out performer over the last 18 months and forecasts from independent analysts are for this to continue.”

Mr Williams said vacancy rates in the Perth CBD were forecast to reduce further in the coming 24 months, which in turn is expected to lead to an increase in net effective rentals.

“With a yield spread between Perth and Sydney assets at approximately 200 basis points, this represents an exceptional opportunity for investors.”

Significant capital expenditure totalling close to $7 million has been completed by the vendor of 182 St Georges Terrace over the past three years, and includes a complete ground floor lobby upgrade and refurbishment, full replacement of all lift cars, BMS upgrades, chiller replacement, new End of Trip facility and a number of spec fitouts to modernise the building.

The Expressions of Interest campaign for the property will close at 2pm, Thursday September 30.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.