West Perth office in $13m sale

Australian Development Capital has bought a three-level office building in West Perth for $13.1 million.

The property development group purchased 8-12 Richardson Street, known as 10 Richardson Street, from local investors Ian and Christina McIntosh, this month.  

The building comprises 2,345 square metres of net lettable area on 1,695sqm of land.

Workpac occupies the ground floor of the building and negotiations are in place for a mining company to take up level one.  

LJ Hooker marketed the property, which was sold off-market.

ADC_ director Rod Hamersley described the asset as a great addition to the company’s investment portfolio.

“West Perth is a prestige office location popular with the mining sector, which is enjoying a surge in exploration and production spending,” he said.

“The previous vendor had invested substantially in refurbishment of the building’s services and fitout, with one of three floors leased at the time of placing the property under contract."

He said ADC_ would look to secure full tenancy of the building in coming months.

“The property provides our investors with exposure to a premium commercial asset that we expect to be in strong demand as tenants continue to seek out quality space for their staff.”

LJ Hooker Commercial Perth principal Brian Neo said the sale demonstrated the appetite for high quality assets in the CBD fringe office market.

“The property sold for $13.1m which we believe is the highest sale in West Perth for the year,” he said.

“Whilst two thirds vacant the buyers recognised the opportunity to acquire a fully refurbished building in an excellent location with high parking ratio." 

Ian and Christina McIntosh, trading as Mountway Investments, bought the property in April 1996 for $4.86 million.

According to RP data, Mountway is owned equally by the McIntoshes, of West Perth, and Clive and Cynthia Brown, of Mosman Park.

He said LJ Hooker would continue to market the remaining vacancy and manage the asset for the buyers, in conjunction with Sheffield Property.

ADC_ also owns 1309 Hay Street, which it bought in 2013 and is now home to the Holiday Inn.

The Cottesloe-based company has applied to develop the Perth Girls School site.