An office building with boosted redevelopment potential at 10 William Street in the  Perth CBD is about to hit the market again, after selling last year in one of only two major CBD  transactions in the city for 2023. 

The six-storey building has 4,248sq of net lettable area and sits on a 1,560sq m site, with secure open  parking at the rear for up to 30 cars. 

It is being sold via an Expressions of Interest campaign run by Knight Frank agents Tony Delich and  Zach Schreier on behalf of the vendor, Stanley College. 

Stanley College purchased the property late last year in a bid to accommodate the unprecedented growth in international student numbers but has decided to sell due to the impending changes to federal  legislation seeking to pose a cap on international student enrolments. 

The building has an occupancy of 75.5% and a WALE of 2.69 years. All tenants are educational  institutions – namely the US-based educational provider KAPLAN and the Anglican Schools  Commission - with most floors currently having a class 9B building classification, suitable for educational  facilities such as schools and universities. 

Mr Delich said the property represents a unique opportunity for investors and developers.  

“Situated on one of the last remaining development sites in the core of the Perth CBD, the 1,560 sqm  site offers significant development potential,” he said. 

“With a current overhaul and impending implementation of the City of Perth’s new City Planning Scheme No.3, significant increases in base plot ratios across the CBD are to be expected, with 10 William Street  expected to see its base plot ratio increase from 6:1 to 11:1, plus bonuses. 

“With the successful transformation of Elizabeth Quay nearing completion, the attractiveness of nearby  properties will be enhanced significantly. 10 William Street is perfectly situated between the core of the  CBD and the new Elizabeth Quay and will no doubt benefit from this urban expansion.” 

Mr Schreier said the property offers a multitude of opportunities for astute investors that are looking for  a property with flexibility of options.

“Furthermore, the building itself has enticing investment metrics,” he said. “It’s a stable investment that should yield well in the medium term with above market rents, bolstered by the 9B classification and  robust educational tenant covenants together with huge increase in plot ratio. 

“There is also minimal base building CAPEX required in the short-to-medium term. Recent comprehensive base building upgrades amounting to approximately $2.5 million enhanced building  efficiency and significantly de-risked the asset for incoming owners.” 

Mr Delich said when Knight Frank took the property to market last year there were mor than 70 enquiries during the campaign, with strong interest from education providers due to the 9B classification.  

“During this campaign, we are still expecting interest from these buyers, however we believe there will  be keener interest from local, interstate and international syndicates and developers this time around. 

“WA is the fastest-growing state in Australia on several metrics, with the fastest population growth and  the strongest economic growth in 2023. Office demand has remained robust, with strong positive rental  growth and declining incentives, making WA one of the most attractive investment markets in the  country. 

“Sales transaction activity in Perth’s office market is picking up, with the city seeing its first office transaction on the Terrace in more than 12 months, with the sale of 181 St Georges Terrace for $26.5  million to Japanese company Yamamoto Realty, reflecting strong sentiment for WA.” 

The Expressions of Interest campaign for 10 William Street will close at 3pm (AWST) on Wednesday,  28th August. 

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