Wesfarmers offers HQ

WESFARMERS Limited has placed its half share of its Perth headquarters on the market.

The A-grade, 12-storey building at 40 The Esplanade includes 122 car bays, an imposing elevation, unrestricted river views and easy freeway access.

Wesfarmers owns the 10,793 square metre property jointly with Mercantile Mutual.

Wesfarmers occupies 4,153 square metres while other major tenants include LandCorp, Jardine Insurance, Cathay Pacific and Garuda.

Perth offices have failed to spark the interest of buyers in recent months. Some agents have put the lack of interest down to interest rate uncertainty while others put it down to the Olympics.

The University of WA failed to sell the Department of Transport’s home at 441 Murray Street, the AMP building has yet to be sold and Central Park and 50 per cent of Allendale Square also failed to find a buyer.

It remains to be seen whether the Reserve Bank building at 45 St George’s Terrace and the Wesfarmers property will attract more interest now that the Olympics is over, interest rates appear to have stabilised and vacancy rates continue to fall.

Chesterton International associate director Ian Mickle said that despite the failure of recent offerings at the top end of the market, he anticipated strong interest in the building.

“This is a bit of a test of the market after Central Park and a half share of Allendale Square failed to sell, but we are confident that the time is right to offer half of Wesfarmers House,” Mr Mickle said.

“This is a bit of a test of the market after Central Park and a half share of Allendale Square failed to sell.”

– Ian Mickle

“The fact is the market sat on its hands for the first three months of the financial year, waiting to assess the first full quarter impact of the GST, seeking direction on interest rates and absorbing the after affects of the pre-GST buy-up but there is strong evidence of renewed confidence and the active return of buying interest across the board.

“There is plenty of money around seeking quality investments such as this and there are a number of potential buyers who have tendered for more than one investment this year without success.”

Mr Mickle said there was a strong feeling that buyers were tired of going through the whole tender and due diligence process, often at a cost of more than $20,000, only to be outbid.

According to Perth Cityscope, both Mercantile Mutual and Wesfarmers Ltd have formed a holding company called Zaafir Pty. Ltd.