Wellington Street building sells for $8.65 million
The sale, which was managed by Colliers International’s Tim Scott and Ben Tana, is expected to pave the way for construction of a $38 million student accommodation building on the site.
The City of Perth Local Development Assessment Panel in January approved an application lodged by architectural firm MJA Studio for construction of a 39-storey student accommodation tower and the preservation of the existing exteriors on Wellington and Queen streets, which date back to the late 1800s.
According to the development application, the building would have 258 units and the capacity for 433 beds. It would sit above three ground-floor commercial tenancies zoned for retail, dining or small bar.
The units would be configured to sleep between one and six students with a mix of private and shared bathroom and kitchen facilities.
The vendor was Perth-based company Ellamore Pty Ltd.
Mr Scott said the transaction’s land value of $12,572 per square metre reflected the site’s location and proximity to Perth City Link.
“The redevelopment of this 688sqm site, which is opposite Yagan Square and just a short walk to Perth Bus Port and Perth Railway Station, will add significant vibrancy to the city,” Mr Scott said.
“The proposed building will be the city’s fifth tallest and its student residents will help to activate Yagan Square’s open spaces, cafes and bars, and future developments between the city and Northbridge.”
Mr Tana said the marketing campaign for the Wellington Street site, which was also next to the recently redeveloped Raine Square, attracted interest from local and overseas buyers wanting to secure a development site in Perth’s CBD.
“Globe Backpackers’ city-centre location has made it a popular destination for Perth visitors and a future student accommodation development will ensure this prime site continues to be an important destination in the city,” Mr Tana said.