Local buyers get in on the office action

The good times are continuing in the Perth office market, with almost $400 million worth of CBD property changing hands this year and local investors weighing in heavily alongside interstate and international buyers.

And as local buyers line up, analysts expect the market will generate further profits for at least another two years.

After only two major CBD properties were sold last year for a total of $28.7 million, this year the office sales market will smash through the previous full-year record for sales of $282.14 million in 1997.

Perth’s biggest individual property purchaser this year has been property investor Hossean Pourzand, who recently purchased 251 St Georges Terrace for $30.8 million, from the National Australia Bank Super Fund.

Earlier this year, Mr Pourzand bought the Raine Square development site for $21.5 million with partner Luke Saraceni. Plans for the site include a nine-storey, 30,000 square metre building, although an anchor tenant has not yet been confirmed.

Another big local purchase was completed by Primewest Management Pty Ltd, which bought 15 William Street for $31.5 million earlier this year. Primewest’s directors include John Bond and David Schwartz (a 33 per cent shareholder in the company).

The William Street property had been on the market periodically since 1998 by then owner Sword Properties, which had been asking upwards of $35 million.

Rollanson Pty Ltd – owned and directed by Nic Giorgetta, managing director of gold company Equigold NL, and his wife, Kay  – bought 186 St Georges Terrace for $13 million earlier this year.

The Hawaiian Group sold 218 St Georges Terrace for $11.3 million to a private investment company owned by Tina Bazzo, understood to be the partner of wealthy farmer Allen Caratti.

Mr Caratti is also the former land development partner of the bankrupt Kevin Pollock (see story, page 3).

While Perth locals are representing a strong contingent of buyers in the CBD market, eastern states groups and overseas investors have also been active in the Perth office market.

Jones Lang LaSalle sales and investments director John Williams said interest was widespread, with the market making substantial profits for the first time in some time.

“This situation is going to continue for another two to three years; it is just a matter of whether people wish to sell or not,” Mr Williams said.

“We have offers of similar yields and rates per square metre to sales that have recently been completed, and owners are deciding not to take those offers.”

CB Richard Ellis institutional property investments manager Andrew Woodley Page said local investors were prominent because they were able to mobilise capital quickly, and had a better understanding of the strength of the WA market.