Monadelphous home to draw offshore, domestic buyers
One of the biggest office assets outside the Perth CBD has been sent to market, with interest from offshore and domestic buyers expected to push the sale price north of $75 million.
The Gateway Building – occupying a prime city fringe location on Albany Highway, at the eastern entry point to the CBD – is home to ASX-listed engineering powerhouse Monadelphous Group, which holds a long-term lease over almost 90 per cent of the office complex.
The high-profile modern building, which was completed in July 2010, is being offered for sale by vendor Finbar through Colliers International.
Colliers International Director Investment Services Ian Mickle said the Gateway Building presented a unique opportunity for commercial investors.
“This is a top-quality asset, newly completed and underpinned by a secure long-term lease to a blue chip national tenant,” he said.
“The location further adds to the value proposition – just minutes over the Causeway to the heart of the CBD, with views of the river and city, while sitting in a thriving retail, entertainment and commercial precinct in Victoria Park.
“It’s also ideally positioned with regard to the planned $2 billion Riverside precinct, which is expected to see some 90,000sq m of new retail and commercial space created, and the development of the new Perth stadium and Crown Casino expansion on the nearby Burswood Peninsula.”
The Gateway Building offers a total of 12,813sq m of net lettable area over three nodes, and has a 4 star Green Star and 4.5 star NABERS rating.
The A Grade complex, which occupies a 6,590sq m site overlooking the intersection of the Causeway, Great Eastern Highway and Albany Highway, has floor plates of between 1,080sq m and 2,500sq m with 339 secure car bays.
Tenant facilities include secure bike racks, lockers, showers, gymnasium, sauna and conference room.
Monadelphous Group, which has a lease through to 2022, also has exclusive use of an area of 2,466sq m which includes open landscaped deck and lobby areas.
The Gateway Building currently brings in an annual net income in excess of $6.1 million – a performance Mr Mickle said would prove a strong draw for investors in the current market.
“We anticipate the current and future value offered by this asset will generate strong interest across the board, with potential buyers including offshore investors, syndicates and high net worth individuals,” he said.
“We would expect to see that level of competitive tension generate a strong price reflective of that value proposition.”
The Gateway Building at 59 Albany Highway, Victoria Park, is being offered for sale via Offers to Purchase closing November 14.