25/03/2009 - 22:00

Alluvion half share for sale

25/03/2009 - 22:00

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CHARTER Hall is selling its 50 per cent stake in Alluvion, bringing to the market the first of the city's new office tower developments.

Alluvion half share for sale

CHARTER Hall is selling its 50 per cent stake in Alluvion, bringing to the market the first of the city's new office tower developments.

The half stake in the property, located at 58 Mounts Bay Road, has been listed for sale by expressions of interest through CB Richard Ellis and Savills and is expected to fetch close to $100 million.

The remaining half stake is owned by Ralph Sarich's Cape Bouvard Investments.

On completion, the A-grade commercial office tower will have about 22,417 square metres of office space, with a three-level foyer accessible from St Georges Terrace.

The 21-level building is due for completion in April 2010.

Almost all of the office space has been pre-leased to major tenants including Clough, Euroz Securities, North West Shelf Shipping Company and Cape Bouvard Investments.

The building has been designed to achieve a four-star Green Star office design rating and a 4.5-star NABERS energy rating.

Charter Hall's other assets in Perth include ONE30 Stirling Street, a four-level office building due for completion mid-year, with Police & Nurses Credit Society locked in as a tenant.

It is also planning a mixed office/retail development at 186-202 Pier Street.

The investment sales market has been subdued for the past six months, with institutional buyers virtually non-existent in the Perth market because of a lack of funds and tighter lending criteria.

There were a total of nine transactions of more than $5 million in 2008, four of which occurred in the third quarter, with no sales occurring in the fourth quarter of 2008.

While there have been limited offerings to the market, agents say there is still demand for CBD assets, especially from private and syndicate investors.

The market is also seeing an increased interest from overseas investors, particularly with the declining Australian dollar.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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