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Singapore Airlines House sold, $13m

SINGAPORE International Airlines’ Perth headquarters at 178 St Georges Terrace has been sold for $13 million to Sydney-based property and investment funds management group, Real Estate Capital Partners, and Investec Bank (Australia) Ltd. The nine-storey Singapore Airlines House was one of five properties bought by the joint venture partners, with the others in Sydney, Melbourne, Brisbane and Adelaide, for a total of $40 million. The portfolio was offered via a campaign by Peter Whitaker of Savills. RECP chief executive Andrew Saunders said the Perth property was acquired on a yield of 6.5 per cent but came with significant rental reversion options. To make the most of the investment, the company planned a major refurbishment of the B-grade building this year to bring it up to par with other A-grade boutique office stock in the city. The building comprises 3,000 square metres net lettable area and a 10-bay basement car park. “It’s located right in the heart of the terrace and has great potential to deliver above market returns. We plan to hold it long-term,” Mr Saunders told WA Business News. Singapore Airlines originally bought the Perth property in August 1992 for $4.2 million, according to Cityscope. Current tenants include Singapore Airlines, Airline Marketing Australia, Exxon Mobil Gas Marketing, Australian Tour Specialists, and MWH Australia. Mr Saunders said the portfolio purchase was RECP’s first foray into direct properties and it believed there was still plenty of strength left in the Perth commercial market to warrant more investments in the city. “We’re still scanning around in Perth. There are still opportunities available, it’s just a case of finding value,” he said.

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