GE Real Estate has opened its cheque book in Perth once again, snapping up the RSM Bird Cameron building at 8 St Georges Terrace this week for $27.3 million.
Queensland-based property and funds manager Cromwell Group said the off-market sale of the eight-storey building to GE would realise a gain for the group of about $5 million after selling costs in the 2008 financial year.
Cromwell paid $11.1 million for the property in June 2004 as a foundation asset for its Cromwell Diversified Property Trust.
The building has a net lettable area of approximately 4,550 square metres and is fully leased to business advisory and chartered accountancy firm RSM Bird Cameron until November 2008, after which it has two five-year lease options remaining.
Cromwell Group executive chairman Paul Weightman said the value of the asset had increased significantly over the past 12 months in line with increased demand and growth in the Perth office market.
"We have determined that now is the right time to realise the growth and invest the funds elsewhere," Mr Weightman said in a statement.
GE Real Estate, meanwhile, has become one of Perth's largest investors, having made clean cash offers off-market for a host of prime CBD and West Perth properties over the past two years.
In January this year, the company acquired a $500 million property portfolio from property magnate Ralph Sarich which included Allendale Square and Allendale 2 in Perth.
Deciding to cash in on Perth's stellar commercial market, GE sold its 14-storey St Georges Centre at 81 St Georges Terrace to Macquarie Bank in July for $42.2 million, almost doubling its investment in less than two years.
