14/07/2014 - 10:03

Saraceni sells CBD site for $40m

14/07/2014 - 10:03

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Singapore development giant Fragrance Group has bought a CBD site from Luke Saraceni’s joint venture with Sirona Capital, Westbridge Property Group, for $40 million.

Saraceni sells CBD site for $40m

An artist's impression of what could be built at 374-396 Murray Street.

Singapore development giant Fragrance Group has bought a CBD site from Luke Saraceni’s joint venture with Sirona Capital, Westbridge Property Group, for $40 million.

The site is located at 374-396 Murray Street, which is in close proximity to the Perth City Link redevelopment as well as the Kings Square precinct.

The land is currently being used as a public car park, but it has development approval for 286 apartments over 31 storeys and 14,000 square metres of office space.

The sale was brokered by JLL manager of sales and investment, Sean Flynn.

“We are thrilled to have enticed Fragrance to Perth after having been in close discussion with founder and CEO Koh Wee Meng for some time,” Mr Flynn said.

“Fragrance is a very exciting group to work with given their strong development pedigree in Singapore.

“At last count they have built, own and operate 23 hotels in Singapore and are also very active in other nodes, with reportedly over 100 completed developments to their name.

“We understand they will look to convert the office component of the Murray Street DA into a substantial hotel offering in the near future.”

The Fragrance Group sale follows a busy past few months for Westbridge, which recently began construction of a Quest Serviced Apartments project on Kings Park Road, as well as selling a Pakenham Street site in Fremantle, which will also be converted into a Quest development.

Fragrance Group also recently outlayed around $126 million on three east coast development opportunities, JLL WA managing director John Williams said.

“Their east coast transactions in June alone included the purchases of the Savoy Tavern site at 134-160 Spencer Street for $44.5 million, and the 24-storey 555 Collins Street building for $78 million,’’ he said.

“Both of these Melbourne sites are flagged for high-rise, mixed-use developments of potentially up to 100 storeys, indicative of the calibre of the Fragrance Group’s impressive pipeline of inner-city apartment stock.”

Meanwhile, commercial real estate agency CBRE has been appointed to sell the four-level office building at 18 Richardson Street in West Perth.

CBRE’s Andrew Woodley-Page said the building would provide an excellent opportunity for an owner-occupier or an investor.

“Recent on-market and off-market sale campaigns have been extremely competitive as investors understand the short-medium term upside in Perth commercial property assets,” Mr Woodley-Page said.

“It is anticipated that from mid-2014 occupier market conditions will improve in line with more sustained economic growth as well as a return in business confidence.

“This, coupled with a forecast return of resources activity, at the earliest in 2016, is expected to translate into increased demand from office tenants.”

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