Major West Perth Office Building Sale to Test the Market
One of West Perth’s most significant office buildings will test the strength of WA’s foremost, non-CBD market when it is sold next month, according to joint selling agents Ray White Commercial (WA) and Knight Frank.
The five level, A-grade building sits prominently between Colin Street and Emerald Terrace and is regarded as one of West Perth’s most recognisable buildings.
It is currently occupied by Insurance Australia Limited, which includes brands such as SGIO, NRMA and CGU, with a long-term lease over four levels. It has a WALE of 4.6 years and currently returns annual income in excess of $3.1 million.
Brett Wilkins of Ray White Commercial (WA) said 46 Colin Street was erected on a significant 5,147 sqm with expansive frontage to Colin Street and Emerald Terrace and provided 8,450 sqm of net lettable area.
He said the building also featured 145 car bays, state of the art end-of-trip facilities currently being constructed and expansive gardens surrounding the building.
Knight Frank senior director Todd Schaffer said the building would provide a litmus test for the West Perth market, which was recovering from significant vacancies over the last few years, but was now attracting the attention of national and international investors, as well as locals.
“This is an exceptional asset with strong income from a secure tenant, plus blue-sky potential for rental growth as the market continues its recovery,” Mr Schaffer said.
“Despite current off peak market fundamentals West Perth still has a lower vacancy rate than the CBD and there is no significant new supply forecast in the short-medium term.”
The property is being sold on a leasehold basis, as the land is owned by the Perth Diocesan Trustees with Dexus CPA Trust the current leaseholder. 46 Colin Street is a high quality, blue chip investment and is the sixth largest office building in West Perth. The building will attract strong interest from private investors and syndicators.
The leasehold interest in the property will be sold by Expressions of Interest closing on June 6, 2017.