In the sale of its last asset, the Insurance Commission of WA has sold Westralia Square at 141 St Georges Terrace, Perth for $216.25 million.
The building was one of five properties put to the market by the Commission in early 2015 and one of three located in the Perth CBD. The Insurance Commission of Western Australia is a statutory corporation owned by the Western Australian Government that provides injury insurance to motorists and self-insurance to the Government. It realised a total of $870 million, including $87 million for the neighbouring property, Westralia Plaza.
The purchaser, GDI Property Group, is an ASX listed fund manager and real estate investor which was established in 1993. The group’s philosophy focuses on location, easily divisible floor plates, opportunity for refurbishment and purchasing for a price that is less than the replacement cost.
Westralia Square, according to Perth Cityscope, is a 19-storey office building which was completed in 1991. The building has a 5-star NABERS rating, a net lettable area of 32,635 sqm and comprises ground and 18 upper floors plus five levels of basement car parking for 537 vehicles. Major tenants include Western Australia Police, Registry of Births, Deaths & Marriages and the State Solicitors Office.
The whole building last traded at $55 million in 1989 with a 33% interest trading at $33 million in 1995. This sale, at $216.25 million, represented an initial yield of 11.45% on a passing income of $24,770,000 (net).