05/12/2005 - 17:07

Knight Frank in $50m of sales

05/12/2005 - 17:07

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The first half of 2005-06 has been one of the most active sales periods in the Perth CBD for many years according to Knight Frank, which has sold more than $50 million worth of buildings in the last few months.

Knight Frank in $50m of sales

The first half of 2005-06 has been one of the most active sales periods in the Perth CBD for many years according to Knight Frank, which has sold more than $50 million worth of buildings in the last few months.

In the most recent sale, 251 St Georges Terrace was sold to a local private investor for $30.8 million. The vendor was National Australia Bank super fund, and there was also interest from several major eastern states investors.

Located at the western end of St Georges Terrace opposite QVI and the Woodside Building, 251 St Georges Terrace is a nine level office building with 9746 square metres of net lettable area.

Major tenants include Clough Engineering, Telstra, AAPT and Vodafone and the annual rent is in excess of $2.34 million.

In another recent sale by Knight Frank, Sydney-based property company GDI Group Ltd paid $22 million for 12 St Georges Terrace - a 12,000 square metre office block that is to be strata titled.

The vendor, British Virgin Island-registered Hennex Managament Ltd paid $11.2 million for the building in 1993 and undertook a $2.4 million upgrade in 2004.

Knight Frank also recently sold a modern, eight level office building at 10 William Street to a group of US-based investors for $8.5 million.

Located just off St Georges Terrace, right next to the future Esplanade train station, the building has a total office area of 4235 square metres, but was bought with vacant possession.

The property also features 31 car bays and has further development potential of approximately 3570 square metres.

In other sales 251 Adelaide Terrace was bought by GE Commercial Finance Real Estate for $16.5 million.

Knight Frank agency director John Corbett said the Perth office market had been extremely active and the underlying investment fundamentals were the best in Australia.

He said Perth had a rapidly decreasing vacancy rate and strong demand from tenants, combined with a booming economy and strong consumer confidence.

"Values for buildings in all grades throughout the Perth CBD have firmed significantly in recent months and this has flushed a few sellers into the market," Mr Corbett said.

"The challenge now will be to find more CBD properties to meet the ever increasing demand for quality assets."

 

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