PROPERTY Fund Manager, Realside, has bought The Colonnade in Perth’s Subiaco suburb for $37.85M at 388 Hay Street.
With a WALE of three years, the property had a 5973sq m* land area and 8,175sq m* building area, and was sold following a successful expressions of interest campaign.
The Colonnade property was marketed and sold by Ray White Commercial (WA) Property Advisor Brett Wilkins, in conjunction with JLL Director Nicholas Agapitos, Nigel Freshwater and Sean Flynn.
Mr Wilkins said the potential offered by repositioning the retail tenancies and working the investment as part of the rejuvenation of Subiaco made the investment appealing.
“Subiaco as an inner-city suburb of Perth that has been very depressed in recent years, but a number of projects means the future for the suburb is bright,” Mr Wilkins.
“Not only is the redevelopment of the football oval underway, but we also have the future redevelopment of Princess Margaret Hospital and the redevelopment of Subiaco Pavilion. These, combined with a pro-business local authority, are real positives for the area.
“The asset offers a diverse tenancy mix and secure income stream, anchored by NYSE listed Fortune 500 company Newmont, ASX listed Northern Star Resources and Goodlife Health Club.
“Developed in 1995 by Wayne Teo as a high-end fashion boutique of shops, the property was bought by Hawaiian in 2007 and refurbished and remodeled, with the upper floors becoming two levels of office space and a major gym on the ground floor.
“The property further benefits from a nine-level car park managed by Wilson Parking, together with ground floor activation along its Hay, Catherine and York Street frontages.”
JLL’s Director of Sales and Investments Nicholas Agapitos believed astute purchasers were seeing counter cyclical value in Subiaco at present.
“The sale of The Colonnade represents investor confidence in the affluent inner-metropolitan suburb of Subiaco,” Mr Agapitos said.
“The property represented an outstanding opportunity to acquire a secure income-producing investment on a prominent corner in the heart of Subiaco.”