Buckeridge property sells for $43m

UPDATED: Singaporean-listed OKP Holdings has made its first foray into Australia, via the purchase of an East Perth property for $43.5 million from the estate of the late Len Buckeridge.

OKP Holdings, a Singaporean infrastructure and civil engineering group, announced the acquisition of the freehold office complex at 6-8 Bennett Street in East Perth last week, which was put on the market through JLL and Knight Frank last November, according to realcommercial.com.au.  

The complex comprises a net lettable area of 10,219 square metres across two adjoining properties – a four-storey building and a nine-storey A-grade building, which also includes a multi-storey car park.

Close to 68 per cent occupied, the combined leases of the property’s mix of government and corporate tenants contribute to a weighted average lease expiry by income of about six years.

OKP group managing director Or Toh Wat said the group’s entry into Australia represented a significant milestone for the company and was a strategic move in line with its long-term strategy to diversify earnings and build a recurrent income base.

The Property Council of Australia's latest office market report showed Perth's CBD office vacancy conditions were improving, with the rate falling below 20 per cent (to 19.8) for the first time in two years. 

“We see good upside potential in raising occupancy as we expect demand for offices in the Perth CBD to continue to improve over the medium term, given the limited new office supply and strong demand for good quality office space,” Mr Or said.

“As well as rising activity in the mining sector which is a major employment driver for the city.”

OKP’s purchase follows a host of other overseas groups making a move on Perth, with recent data from Savills Australia noting that foreign investors accounted for more than half of the purchases made across the CBD market in the past two years.

Mr Buckeridge was the founder of construction group BGC.

Two of his sons, Andrew Buckeridge and Sam Buckeridge, are executors of Mr Buckeridge's estate.

(An earlier version of this article mistakenly said the property was owned by the two sons.)