CBRE marketing Compass building

The A-grade office building at 12 Newcastle Street on the north eastern edge of the CBD has been offered for sale through CBRE.

Constructed in 2010, the building has 4,946 square metres of gross lettable area, plus 47 car bays, and sits on 1,749sqm of land.

The building has a fully leased net income of $1.9 million and is generating more than $1.34 million in net passing income.

It is 80 per cent leased with a 5.8-year weighted average lease expiry.

Food and support services company Compass recently signed a 10-year lease for the 58 per cent of the building’s office space it occupies.

NEXTDC Limited occupies 13 per cent of the property. NEXTDC Limited is currently constructing an $80 million data centre facility across the road at 105 Lord Street – a property it purchased earlier this year for $20 million.

A smaller portion of the building, 406sqm, is leased to Ionic Property Group.

CBRE’s Mr Desange said the property was expected to attract interest from buyers looking to capitalise on Perth’s attractive investment fundamentals.

“We anticipate strong interest from local, eastern seaboard and Asian private capital and syndicators seeking to unlock value in Perth, which continues to offer an attractive yield premium compared to some other markets,” he said.

“The yield spread between Perth and the eastern seaboard CBD markets are well above the long-term average, with the yield spread between Perth and Sydney currently 203bps above the average of 132bps.”

The expression of interest campaign being conducted by CBRE closes on November 15.