Properties & Pathways has bought a seven-storey office building on Murray Street from Nick Zorzi-led Fairworld Holdings.
Properties & Pathways has bought a seven-storey office building on Murray Street from Nick Zorzi-led Fairworld Holdings for $33.23 million.
The Subiaco syndicator bought 503 Murray Street, in the first CBD office transaction this year.
ASIC shows Zorzi Construction director Nick Zorzi as a director and major shareholder of Fairworld Holdings Pty Ltd.
Fairworld Holdings bought the asset in 2006 and it was brought to the market in 2019 when it was expected to sell for up to $50 million.
Sterling Property sold the building in an off-market deal, brokered by Sterling Property senior partner Jack Bradshaw.
Properties & Pathways managing director Cal Doggett said the Murray Street location is anticipated to provide a geographical advantage.
“We identified 503 Murray Street for its outstanding building fundamentals and its sought-after location, access and carparking attributes,” she said.
“Our job is to identify value and then build a strategy to unlock this value during our ownership period.
“503 Murray Street presented us the perfect opportunity to do just that, in our own backyard.”
Mr Bradshaw also said the comparative advantages of Perth's office market had been overlooked.
“One of the main factors that appealed to the buyer was that the property, which is just over a decade old, was well built and maintained,” he said.
“In addition to that the improvement in the office leasing market in Perth has been well-documented and I could talk with confidence to this.”
Mr Bradshaw added Perth had not dealt with the heightened trend of remote work comparative to other Australian capitals.
"WA’s resource sector has been very resilient and particularly active recently within the western end of the Perth CBD,” he said.
“Perth, comparatively, has also not had to deal with the negative effect of the work-from-home trend which has led to a heightened demand for fitted out quality office space.”
Mr Doggett said although office space headlines have been less than optimistic in eastern states, the Perth office market is unique, and Properties & Pathways are confident the acquisition will provide value for its shareholders.
Office space starts at 327sqm, with available full-floor platforms which range 1,180sqm. For prospective high-scale businesses however, the entire building spans 7,299sqm.
With the leasing market predicted to tighten, the sale is expected to reset the lease profile of the building and offer avenues of opportunity for unique businesses in Perth.
The buyer is said to have an eye for a contemporary design which is expected to be applied to the refurbishment scheduled for the lobby floor, end-of-trip facilities and level six of the office building.
