The start of 2018 has seen strong interest in Perth’s recovering office market with $120 million worth of St Georges Terrace office buildings settling in January.
Three buildings along Perth’s main street have changed hands.
Credit Suisse sold its Old Reserve Bank building at 45 St Georges Terrace to Singaporean joint venture Redhill Partners and Straits for $53.31 million.
The sale of the 10,010sq m, 11-storey office building was negotiated by JLL’s John Williams and Nigel Freshwater and CBRE’s Lloyd Jenkins and Ben Younger. It was previously sold by Stockland to Credit Suisse in 2012 for $55.3 million.
Co-working incubator Spacecubed occupies about 200sq m of the building which is 75 per cent occupied.
Related reading: Credit Suisse Offloads 50% Stake in Sydney Building
Two other buildings, 55 and 182 St Georges Terrace, were sold for $45 million and $25 million respectively to Chinese property developer and investor Zone Q.
Zone Q acquired Westralia Plaza for $87 million and has developed a mixed-use project in South Perth called Pinnacle.
The vendor was Standard Life Investments Global Real Estate Fund.
The former Jardine House at 182 St Georges Terrace is a 12-storey office building with a NLA of 5,300 square metres on a site area of 810sq m. 55 St Georges Terrace is an 11-storey office building which was refurbished in 2016.
Related reading: Office Tower Sells for $43m in Recovering Perth Market
According to the latest Office Market Report by the Property Council of Australia, the overall office vacancy rate in Perth CBD has already peaked and is now in a steady downward trend.
“The Perth CBD office market has turned the corner, and positive demand for new office space has returned after five difficult years,” Property Council WA executive director Lino Iacomella said.