West Perth building sells for $16.57 million

Colliers International sells office building at 1101 Hay Street

Qube Property Group and Dorado Property have sold a leased office building on Hay Street in West Perth.

The seven-storey building, Binary 1101 Hay, sold for $16.57 million, on a net passing yield of 8.3 per cent to a private WA-based company.

The off-market sale was brokered by Colliers International’s Wayne Lawrence and Tory Packer, who said the sale reflected a rate of $6,600 per square metre, a strong result for West Perth.

“Confidence is gradually returning to the office markets in Perth and West Perth and there is renewed interest in buying leased office buildings,” Mr Lawrence said.

“Importantly, the transaction points to an appetite amongst WA private buyers for substantial office assets.

“We are aware of a number of private family companies in Perth that are keen to invest in offices and have the capacity to transact on office buildings up to $100 million.”

Built by the vendors five years ago, Binary 1101 has a net lettable area of 2,510 sqm and is 93 per cent leased. The building has 27 car bays and a bike storage area. It occupies a 932 sqm site and has five tenants, including oil and gas contractor Saipem. 

Ms Packer said the high yield reflected rents set during the mining boom when Perth’s office market peaked.

“If rents were at the current market level, the yield would have been close to 6.75 per cent,” Ms Packer said.

“The Binary building is walking distance from the CBD and with a 4.5-Star Nabers energy rating, will hold strong appeal for energy-conscious tenants.”

Related Experts
expert photo

Wayne Lawrence

Head of Investment Services

Perth

My commercial property experience spans almost 25 years and has been based on a solid foundation of 17 years in the valuation industry. My transaction experience varies from short stay accomodation to CBD offices. In the past 3 years I held a General Manager role at a private property company where I oversaw the acquisition and development of substantial commercial, retail and industrial projects and my experience on both the agency and client side of transactions has been immensely advantageous for my current role.

View expert
expert photo

Tory Packer

Director

Perth

Tory has been in the commercial property business with Colliers International (WA) for over ten years. Throughout this time she has assisted in the management and sale of properties for high profile clients and government departments.

Tory has completed a Bachelor of Laws and Bachelor of Commerce degree majoring in Corporate Finance at the University of Western Australia. She is a licensed Real Estate Agent and a member of the Real Estate Institute of WA.

Tory has been an appointed agent on successful sales and marketing campaigns for the disposal of mixed-use and commercial assets. Investment services transactions negotiated recently by Tory include a number of tenanted investments, heritage refurbishment opportunities, existing buildings and residential, commercial and mixed-use development sites.

Tory has also undertaken frequent acquisition work on behalf of purchasers seeking to secure offmarket assets, and has developed comprehensive negotiation skills.

View expert