Brookfield Properties is anticipating offers of more than $350 million for the 51-level office building at 108 St Georges Terrace.
Brookfield Properties is anticipating offers of more than $350 million for the 51-level office building at 108 St Georges Terrace.
JLL and CBRE were appointed to sell the 51-level 38,332 square-metre office building on 108 St Georges Terrace via an international expressions-of-interest campaign, which opened today.
Once the tallest building in Perth, the tower on the 3,891 square metre site at the intersection of St Georges Terrace and William Street was developed by businessman Alan Bond.
A three-storey heritage-listed Palace Hotel sits adjoining the tower, with Meat and Wine Co restaurant operating on the ground floor.
The tower has been the headquarters for Perth-based mining and metals company South32 since 2015 and was previously the headquarters of Bankwest.
CBRE head of capital markets WA Aaron Desange said they were expecting offshore capital and domestic institutional capital among the interested buyers.
“An iconic fixture on Perth’s skyline, 108 St Georges Terrace represents prime core CBD real estate with an opportunity to produce core plus returns,” he said.
“The building will be regarded by international investors as a trophy asset and will undoubtedly attract capital being deployed in Asia Pacific.
“Providing a weighted average lease expiry (WALE) of 3.6 years, no single occupant represents more than 25 per cent of the property’s income stream allowing for the retention and expansion of existing tenants within the building.
“This aligns well with the likelihood of constrained office supply from 2025 to 2027 helping support future rental growth prospects.”
South32 tower on 108 St Georges Terrace. Photo: CBRE
JLL capital markets Australia executive director Simon Storry said few buildings of this quality have traded in the Perth CBD in recent years, highlighting the scarcity of investment opportunities in this category.
“108 St Georges Terrace has only traded once in 30 years as a 100 per cent interest, offering investors a compelling opportunity for control over a prime grade asset in the heart of the Perth CBD, which has benefitted from significant building refurbishment and capital expenditure works over the last 10 years,” he said.
“International investors are actively seeking strategic assets across Australia’s CBDs, particularly high-quality office product in key locations.
“With the re-opening of international borders, we are seeing new capital sources emerge, and the removal of domestic travel restrictions has been hugely positive for the Perth office investment market.”
The international expressions of interest period closes at 2pm on June 29.
