Colliers International fields strong demand for Scarborough Beach Road office building.
Strong demand for investment-grade buildings in Perth’s suburban office market is driving a brisk turnaround for listings.
In the latest transaction, an Innaloo office building leased to international IT company Sage, was sold to a private investor for $4.25 million, just after the start of the marketing campaign.
Located on a prominent site in Innaloo’s commercial centre, the 1058sqm building was sold by Colliers International Director Investment Services Nicholas Agapitos who said there had been strong interest from a number of potential buyers.
“Demand for commercial buildings leased to established businesses is running well ahead of supply, especially from Perth-based, high net worth buyers,” Mr Agapitos said.
Located at 374 Scarborough Beach Road, the two-storey office building occupies a 1138sqm site and has an annual net income of $395,000. The sale represents a yield of 9.29 per cent.
Sage, which is listed on the London Stock Exchange and has been a FTSE 100 stock since 1999, specialises in accounting payroll and payment systems. The company has three-and-a-half-years remaining on its Perth lease.
As well as a secure lease, Mr Agapitos said the office building was just a short walk from the shopping and amenity at Westfield Innaloo shopping centre, which has been earmarked for a major expansion.
The Innaloo property also has dual street frontage with a boundary on Wotan Street that includes access to undercover parking for 21 vehicles.