Colliers International has been appointed to find a buyer for a modern office building that is leased to the State Government in East Perth’s Claisebrook Village.
The 1145sqm office occupies a 2045sqm site on Brown Street, which has a mix of residential and commercial buildings and connects to the Swan River foreshore.
The property, at 16-20 Brown Street, is leased to the Minister for Works until 2022 with an option to renew. The building was renovated in 2009 and has a 4.5 Star NABERS energy rating.
Colliers International’s Wayne Lawrence and Tory Packer will oversee the sale, which is expected to generate a yield close to seven per cent.
“Securing a commercial property with high underlying land value at an attractive yield is difficult in this market and as a result, we are expecting a lot of interest from local and offshore buyers,” Mr Lawrence said.
“The asset is modern, has development upside, and, has four years remaining on a lease to the State Government.
“It certainly satisfies the investment criteria that are important to today’s buyers.”
Ms Packer said the land area and the property’s location, just 120 metres from Claisebrook Cove, the centrepiece of East Perth’s redevelopment, would also be strong selling points.
“Several properties were amalgamated to create this site and at 2045sqm, it could be redeveloped to accommodate an apartment or a mixed-use development in the future,” Ms Packer said.
“The property is just 3km from Perth’s CBD, less than 100m from the Swan River and with the opening of the Matagarup Bridge, it will also be connected to Optus Stadium and the Burswood Peninsula, so it ticks all the boxes for buyers looking for amenity.”
The office accommodation includes two open plan work areas, several meeting rooms, a boardroom, an IT room and the staff amenities include a kitchen and an outdoor alfresco area.
The property has a 45m frontage to Brown Street and 22 parking bays.
Offers to purchase 16-20 Brown Street close on August 9.