WorkZone East sold in near $70m deal

Sydney-based property fund manager and investment group CorVal has made a big acquisition in Western Australia, buying Northbridge office building WorkZone East from Charter Hall in a $68.2 million deal.

CorVal had reportedly been targeting the asset since midway through last year, after commercial agencies Knight Frank Australia and JLL began marketing the property on behalf of Charter Hall in May.

The transaction was finalised in December and achieved an initial yield of 8.72 per cent, valuing the 12,362 square metre building at $5,521/sqm.

WorkZone East, which was built in 2013, is fully leased to CIMIC Group subsidiary CPB Contractors, Telstra and BP.

CorVal is ranked 22nd on the BNiQ Commercial Owners list, while Charter Hall remains the third-largest office landlord in Perth, with a portfolio of eight assets, including four St Georges Terrace towers.

UPDATE: A previous version of this article stated the acquisition was CorVal's first in Western Australia. This is incorrect; CorVal purchased 80 Stirling Street in 2013 for $72 million. Corval sold 80 Stirling Street to Gaw Capital for  $35 million in November last year. 

Gaw Capital is planning on converting the building, which was formerly Telstra's headquarters, into a 500-bed student accommodation facility.