19/09/2017 - 15:09

City retail strip to become student accommodation

19/09/2017 - 15:09

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The new owner of 335 Wellington Street, home to the Wellington Surplus Stores for 75 years, has lodged an application with the City of Perth to build a $70 million student accommodation building.

City retail strip to become student accommodation
The properties recently sold in an off-market deal worth $8.4 million. Photo: Attila Csaszar

The new owner of 335 Wellington Street, home to the Wellington Surplus Stores for 75 years, has lodged an application with the City of Perth to build a $70 million student accommodation building.

Lease Equity announced the sale of 317-335 Wellington Street and the adjacent 105-107 Pier Street site last week in an off-market deal worth $8.4 million, the first transfer of the properties in more than 40 years.

According to realestate.com.au, the 333-335 Wellington Street site last sold for $30,000 in 1971.

Lease Equity director of capital markets Luke Pavlos negotiated the sale and said, in a statement issued last week, that the off-market nature of the transaction was due to the history and the sensitivity of the businesses occupying the buildings, which had since closed their doors to allow the new owner to reposition the asset.

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

An application has recently been lodged with the City of Perth to build a 30-storey student accommodation with two commercial tenancies on 335 Wellington Street, which will include all five lots.

Business News reached out to Mr Pavlos who was not able to disclose details of the new owner. 

The proposed $70 million development joins three other planned student accommodation projects taking shape in Perth city.

Cedar Pacific is planning to develop a 3,000sqm lot behind Perth Arena, which is part of the Metropolitan Redevelopment Authority’s Perth City Link project, into a 550-bed student housing facility.

Devwest Group will repurpose the former Telstra headquarters on Stirling Street in Northbridge into a 500-bed student accommodation facility, and Stirling Capital has plans to build a 24-storey, 571-bed tower in collaboration with international student accommodation provider GSA, also on Stirling Street. 

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