Stokes buys $12m office building

An Australian Capital Equity subsidiary has purchased a four-storey office building on Kings Park Road for $12.54 million, near its West Perth headquarters. 

Iberia, which is wholly owned by Mr Stokes’ Australian Capital Equity, bought 12 Kings Park Road from Saint John of God Healthcare.

St John of God Health Care's home and ambulatory service Healthcare at Home will stay in the building, but the building has remained largely unoccupied since the healthcare provider moved to Kings Square in late 2019.

The building includes 2,327 square metres of office space and parking for 56 cars on a 1,788 square metre site.

Australian Capital Equity's headquarters are near the site, at 30 Kings Park Road. 

Colliers International’s investment services division brokered the deal.

Colliers investment services director Tory Packer said the sale was a very clear demonstration that investor demand remained strong for West Perth office buildings.

“This particular campaign was hotly contested by multiple local bidders including owner occupiers, resulting in a premium price for the vendor” she said.

Colliers head of investment services Wayne Lawrence said the building, considered B grade office space, would likely be upgraded.

“We’ve seen net positive absorption in West Perth A-grade office space over the past six months, and vacancy has decreased by three per cent – as a consequence, the West Perth market has seen rental growth,” he said.

“It’s understood the new owner plans to upgrade the building to offer A-Grade office space, in order to capitalise on this market movement.”

It was last purchased by Sisters of St John of God for $9.3 million in 2007.