A private investor paid $8.1 million (plus GST) for the office building at 125 Murray Street and is now planning a refurbishment for the vacant nine-storey building, which occupies a prime CBD site.
The vendor was health insurer HBF Limited.
The sale follows a five-week sale campaign run by Colliers International which attracted five competitive bids from investors seeking a CBD building to refurbish and reposition.
Selling agent Tory Packer said the building occupies a 1137sqm site on an up-and-coming section of Murray Street, close to the newly launched QT Perth hotel.
“The sale attracted strong interest from local, national and offshore buyers looking for a building that could re-enter the recovering CBD office market following a refurbishment,” Ms Packer said.
“This part of the CBD is being reactivated by a vibrant mix of hotels, hospitality offerings and apartments and has also been earmarked for further retail and commercial redevelopments.”
Ms Packer said national buyers, who see counter-cyclical investment opportunities in Perth that are not on available in the eastern states, were also prominent in the bidding mix.
“The building’s size, city centre zoning and a 5:1 plot ratio, also made it a sought-after portfolio addition.”
Formerly known as HBF House, the building has a net lettable area of 6325sqm, including eight levels of office, a balcony, a mezzanine floor, an outdoor rooftop space and basement parking.
Built in 1980, the Murray Street building is just 500m from Perth train station and 70m from Murray Street Mall, one of the city’s two busiest pedestrian and retail thoroughfares.
The property is also close to Cathedral Square, The Westin Perth and is just around the corner from a 30-storey student accommodation development on Wellington Street.
The property settled on July 25 and the leasing campaign to reactivate the building will be steered by Colliers International’s Daniel Taylor and Dustin May.