02/10/2007 - 22:00

Clough building a test for CBD market

02/10/2007 - 22:00

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Commercial property investor Hossean Pourzand may break some sales records before the year is out, with the Clough building at 251 St Georges Terrace expected to generate strong interest from investors and developers.

Clough building a test for CBD market

Commercial property investor Hossean Pourzand may break some sales records before the year is out, with the Clough building at 251 St Georges Terrace expected to generate strong interest from investors and developers.

Private equity players in particular are seeking value from significant rental reversions in the current market, as highlighted by recent strong sales of the RSM Bird Cameron Building at 8 St Georges Terrace, Eastpoint Plaza and 1 Adelaide Terrace.

Mr Pouzand and his wife, Jenny, bought the Clough building, originally known as Markalinga House, for $30.8 million in one of the biggest commercial deals of 2005.

The 9,746 square metre A-grade office building is fully leased, with major tenants including Clough Engineering and Telstra.

WA Business News revealed last week that Clough was in negotiations with several parties over a new office lease, including Mr Pourzand, and Cape Bouvard Developments and Charter Hall, the proponents of the new Alluvion office tower project on Mounts Bay Road.

Clough’s lease over four floors in the building is set to expire next year, at which time it has an option to extend for two years.

Knight Frank agency director John Corbett said 251 St Georges Terrace provided more than $5.3 million in annual income and offered further development potential.

The property is located in the city’s burgeoning west end, opposite QV1 and the Woodside Building.

Mr Pourzand first appeared on the Perth business scene in 1987, when he and his wife purchased the Olive Tree restaurant in West Perth.

From the restaurant business, Mr Pourzand moved into commercial and industrial property, developing several sites with partner and Saracen Properties managing director, Luke Saraceni, including the former Megamart site in Perth and the Woolworths retail complex in Murray Street.

A private individual, Mr Pourzand prefers Mr Saraceni to be the public face of their joint venture projects, which go under the name Westgem Investments Pty Ltd.

Westgem’s biggest asset is Raine Square, a prime development site the men bought in $21.5 million in 2004. They are building a 42,500sq m office tower for BankWest on the site.

While Mr Pourzand and Mr Saraceni have several ventures together, Mr Pourzand also has significant holdings in his and his wife’s names, including a 10-storey office complex at 220 St Georges Terrace and a four-storey office building at 24 Outram Street.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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