The latest research from Perth Cityscope shows property sale figures have significantly increased in the past three months. The last three months to the end of March 2020 recorded 20 sales for a total of over $231.3 million; with $143.6 million for commercial, $6.3 million for commercial strata, $12.6 million for retail and $68.8 million for other.
In comparison, the three months to the end of December 2019 recorded 17 sales for a total of over $124.1 million; with $98.9 million for commercial, $10.2 million for commercial strata, $600,000 million for retail strata and $1.4 million for other.
The 12 months leading up to the end of March 2020 recorded 76 sales for a total of over $568.1 million, over $605.8 million lower than the recorded figure for the same time period the year before.
The table below shows sales recorded for the past eight updates of Perth Cityscope:
The most significant sales recorded this quarter together totalled $197.6 million.
A 15,263 sqm office building at 28 The Esplanade, Perth has been purchased for just over $100.5 million by interests associated with Redhill Partners and NYSE-listed Apollo Group. The purchasing entity was Red Hill Partners Investments Pty Ltd. Tom Nattrass, Nigel Freshwater & John Williams and JLL Perth negotiated the sale. The building comprises 17 levels of office space and three levels of basement car parking for 179 vehicles.
A development site at 1 The Esplanade was bought for $64 million by Brookfield EQ 7 Landowner Pty Ltd. Brookfield then sought a 50:50 joint venture partner to develop the site and it is understood Invesco is undertaking due diligence to purchase a half-stake in the development (One The Esplanade). The 30-storey office building is expected to be completed in mid-2023 and will incorporate two levels of basement car parking; a double-height lobby with a cafe/restaurant, retail and exhibition space on the ground floor; a gym on level 1; childcare over levels 1 and 2 and office space across levels 2 to 29. Net lettable area, 52,187 sqm.
Primewest Management Limited purchased 66 Kings Park Road in West Perth for $33.1 million on behalf of 66 Kings Park Road Trust. The sale represented an initial yield of 6.6% on a passing income of $2,185,000 (net). 66 Kings Park Road is a five-storey, 4,700 sqm office building with basement car parking for 102 vehicles.
Some current properties listed for sale include:
- 503 Murray Street, Perth – an eight-level, 7,299 sqm commercial building. For sale by expressions of interest; agent, CBRE Perth (Aaron Desange and Kate Foley).
- 20 Colin Street, West Perth – a single-storey, 227 sqm, brick commercial building. For sale by expressions of interest, closing 18 March 2020; agent, Vita Property Group (Spiro Agapitos).
- 237 Hay Street, East Perth – a two-storey, 332 sqm building formerly used as a nightclub. For sale with an asking price of $2.9 million; agent, IdealRealtyWA (Roy Li).
Properties under contract (conditionally or unconditionally) include:
- 2 Colin Grove, West Perth – a single-storey, 170 sqm office building plus car parking to the rear for five vehicles. The property was advertised with a net income of $50,050 per annum. Under contract; agent, Knight Frank Perth (Tony Delich).
- 8 Colin Grove, West Perth – three former residences which were combined into a single, 602 sqm office plus car parking for around 24 vehicles. The office to the corner has a separate entrance and its own facilities. The property was advertised with a net income of $178,003 per annum. Under contract; agent, Knight Frank Perth (Tony Delich).
- Unit 3, Gledden Building, 731-737 Hay Street, Perth – a 68 sqm retail unit on the ground floor to Hay Street. The unit was advertised with a net rental of $185,000 per annum (as of October 2019). Under contract; agent, Colliers International (Tim Scott).