Macquarie Office Trust is set to capitalise on Perth's skyrocketing office rents with the acquisition today of prominent Adelaide Terrace office building, Eastpoint Plaza, for $56.8 million.
The deal, brokered by agents Knight Frank, represents a $37.5 million increase in the value of the property since it was acquired by the former AM Corporation Ltd, now run by IOOF, for $19.3 million in 2002.
Located at 233-237 Adelaide Terrace, Eastpoint Plaza comprises 11,514 square metres of office and retail space over 11 levels and is predominantly leased by Federal and State Government tenants as well as internet provider iiNet Ltd.
Macquarie Office Trust chief executive Adrian Taylor said it planned to reposition the asset and capitalise on market conditions by negotiating new leases.
Mr Taylor said average rents in the building were 36 per cent below current market rentals but with 50 per cent of leases due to expire over the next three years, significant revisions were expected during the period.
"The acquisition provides Macquarie Office with the opportunity to improve the building's tenancy profile, and seek to secure longer lease terms at market rents as existing leases expire," he said in a statement.
The Eastpoint Plaza building takes Macquarie's office portfolio in Perth to three properties, alongside a 6-level, A-Grade office building at 1,100 Hay Street West Perth and the Australian Taxation Office building on Francis Street Northbridge.
