$22m Belmont office sale

Australian Development Capital (ADC_) has added to its property portfolio with the $22 million acquisition of a three-storey office building, leased to NRW Holdings.

ADC_ settled the deal earlier today, acquiring the asset on an initial 7.7 per cent yield.

The 10,700 square metre landholding comprises two lots: 181 Great Eastern Highway (which comprises the office buildings and 109 car bays) and 67 Cleaver Street (126 car bays).

The office building has a net lettable area of 4,036sqm and is 100 per cent leased by NRW until 2026.

ADC_ director Rod Hamersley said in addition to the asset’s strong leasing profile, the site was located within a well-connected commercial precinct close to the Perth CBD and the airport.

The 4,956sqm parcel at 67 Cleaver Street was also appealing due to its potential for expansion or longer-term redevelopment.

“This is a high-calibre investment opportunity with a long-term and strong anchor tenant that will continue to deliver strong short-and-longer-term returns to our investors,” Mr Hamersley said.

ADC_ anticipates the property will provide a 9.4 per cent per annum commencing return to investors via monthly distributions that would increase over the seven-year investment term.

The sale was brokered by Colliers International head of investment services Wayne Lawrence.

The asset adds to ADC_ existing portfolio of property, mostly developable land.

That includes its asset on the corner of Newcastle and Beaufort Streets, where it is planning to deliver a hotel and dining precinct, and 11 Freeman Loop in North Fremantle, with plans to build an apartment complex receiving planning approval earlier this year.

ADC_ has also partnered with Warburton Group for the Perth Girls School redevelopment, which is now in the planning phase.