The trend for more intense uses of city land continues in Perth with a data centre operator paying $21 million for a property on the corner of Lord and Newcastle streets.
The transaction, Colliers International’s second strata amalgamation sale in recent months, was negotiated by Tim Scott and Tory Packer.
West Trade Centre, a strata showroom and retail property with 15 lots, is located on a high-profile, 6368sqm site on the corner of Lord and Newcastle streets.
Mr Scott said the property was ideally placed to accommodate the city’s northward expansion.
“With underlying land values worth more than the individual strata values, we are expecting to see amalgamation sales become more frequent, especially in the CBD and city-fringe locations,” Mr Scott said.
In a similar transaction negotiated by Colliers International in April, 28 owners of a Perth townhouse complex on Wellington Street sold their homes in one line to Singapore developer Bonvest Holdings for $33.5 million.
Ms Packer said the sale of the Lord Street property, which has frontage to three streets, reflected a land value of $3,298 per square metre.
“The property’s redevelopment potential at one of the gateway entry points to the city was a major drawcard,” Ms Packer said.
“With freeway access across the road, McIver train station just 200 metres away and the CBD and Northbridge nearby, there was a good level of interest in this site from developers and investors.”
Located in the City of Perth’s Stirling Precinct, West Trade Centre was offered with vacant possession, which was also attractive to developers and end use purchasers.