15/12/2021 - 11:55

GDI buys $68m Perth carparks

15/12/2021 - 11:55

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GDI Property Group has bought two Perth carparks for $68.5 million, capitalising on a return of commuters to the CBD as occupancy rates are expected to return to pre-pandemic levels.

GDI buys $68m Perth carparks
GDI Property Group bought 419-431 Murray Street for $30.25 million. Photo: David Henry.

GDI Property Group has bought two Perth carparks for $68.5 million, capitalising on a return of commuters to the CBD as occupancy rates are expected to return to pre-pandemic levels. 

The carparks, at 419-431 Murray Street and 301-311 Wellington Street, were acquired for $38.25 million and $30.25 million respectively. 

The Sydney-based property group told investors the carparks were acquired on a 5 per cent initial yield, with “considerable upside anticipated”.

“Both carparks are being bought following reduced occupancy and revenues from COVID-19 related lockdowns and border closures,” GDI managing director Steve Gillard said.

“We anticipate an improvement in both occupancy and revenue as the border reopens.”

Mr Gillard said he was attracted to the high cash-yield carparks offer and the forecast low capital expenditure requirements.

“With limited new supply of carparking in the Perth CBD, we anticipate the carparks will perform well not only in the short term but over a considerable period of time.”

The Murray Street and Wellington Street carparks are 10 and six levels respectively and both were previously owned by City Car Park Pty Ltd.

The assets will continue to be operated by Wilson Parking Australia.

At its recent AGM, GDI said about 90 per cent of its assets were in WA.

The property fund also owns the Mill Green Complex on Saint George’s Terrace, Havelock House in West Perth and 180 Hay Street in Perth.

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