PRIVATELY owned property developer and investment firm, The Lester Group, has backed its positive view of the commercial property market by agreeing to buy an $8.5 million Subiaco office building.
The Lester Group has committed to buy 2 Bagot Road, currently fully tenanted by Cardno, for $8.5 million, and will open the transaction to investment through private syndication.
Lester Group director Russell Lester told WA Business News the company felt there were quite a few good investment prospects coming along in the next 12 to 18 months.
“We’re inviting investors in to partner with us in the property,” Mr Lester said.
“Rather than buy this property 100 per cent on our balance sheet, we want to be able to participate in a number of opportunities going forward, and that’s why we’re taking an important part of the property, being 20 per cent of the whole, and offering up the remaining 80 per cent to like-minded friends and investors.
“We see some good returns coming from this property in the future, both good income in the future and capital growth, and we feel that’s good for our money and we’re inviting people in to participate with us.”
He said the group’s strategy was to find a project where it could add to the natural growth of the property sector through refurbishment.
A prime example of Lester Group’s work was a substantial refurbishment at 45 and 47 Stirling Highway in Nedlands.
“We have improved those to quite comfortable premises, and that’s what we want to do to Bagot Road,” Mr Lester said.
“It is tired and in need of a facelift and a bit of love, and not only to improve the marketability of the property, but for the tenant to be happy and for their employees to be happy to be coming to work each day.”
