CBD retail strip sells for $8m

The building on the corner of Wellington and Pier streets, most recently home to the Wellington Surplus Stores, and an adjoining property have been purchased in an off-market deal for $8.4 million.

The sale of Perth CBD retail sites 317-335 Wellington Street and 105-107 Pier Street was negotiated by Lease Equity director of capital markets, Luke Pavlos, and marked the first transfer of the properties in more than 40 years.

The site comprises five contiguous allotments totalling approximately 1,400 square metres. 

The Wellington Surplus Stores has been in the locality since the 1940s, with its first incarnation as second-hand clothing store Wellington Dealers, while the adjacent Yoshiya Japanese Restaurant has occupied the Pier Street building for 30-plus years.

Mr Pavlos said both businesses had closed their doors to allow the new owner to reposition the asset.

“The off-market nature of the transaction was due to the history and the sensitivity of the businesses occupying the buildings,” Mr Pavlos said. 

“Sales for land mark properties of this nature are extremely rare, generally once every 30–40 years.”

The site is located directly opposite the proposed World Trade Centre and McIver Train Station with prominent dual frontage to William Street and Pier Street.

It also reflects a significant development opportunity with a 5:1 plot ratio and is near two hotels currently under construction. It is 250 metres from the new Westin Hotel, and 500 metres from the QT Hotel.

Mr Pavlos said the sale was the most significant transaction in Perth’s East End (Historic Heart Precinct) in the past 24 months.

“Investment and development demand within Perth’s East End (Historic Heart Precinct) is very strong as it’s seen as an area which is significantly undervalued,” he said.

“The off-market campaign prompted very strong interest from a variety of buyers including local, national and overseas investors and developers.

“There is a huge amount of investment under way in the precinct and surrounding”.

A $2.1 million project known as the ‘Historic Heart of Perth’ plans to revamp the city’s east end urban environment, and was launched late last year by a consortium led by developer Adrian Fini.