Offshore investors seek assets with income and redevelopment potential.
A Singapore investor has purchased the partially leased office building at 57 Havelock Street in West Perth for just over $3 million.
The transaction, which was signed in December and settles in March, was negotiated by Colliers International’s Director Investment Services Nicholas Agapitos who said the buyer was looking to expand his portfolio and believed West Perth was at, or close to the bottom of its market cycle.
“West Perth’s office market has been hard hit since 2012 with rents down close to 30 per cent for A and B-grade buildings but a number of offshore investors are now weighing up counter-cyclical purchases,” Mr Agapitos said.
“With the CBD just minutes away, they are keen to acquire assets with scope to add value or redevelop.”
Formerly known as Dalbrook House, the three-story building has a net lettable area of 1282sqm, 29 car bays and occupies a 1130sqm site.
“Constructed in 1987, the building is well under the plot ratio guidelines for the site and its development potential was an important consideration for the purchaser,” Mr Agapitos said.
“Offshore investors are a significant buying force in Perth and they are looking for well-priced commercial buildings with income.”
West Perth, the popular home for start-ups in WA’s resource sector, recorded just two other major transactions in 2016: the sale of the office building at 83 Havelock Street for $4.5 million and the sale of 69 Outram Street, which was negotiated by Colliers International, for $6.1 million.