Perth, 30 September 2015 – National fund manager Primewest has capitalised on strong investor appetite for A-grade commercial property with the sale of one of its flagship Western Australian assets, 53 Ord Street in West Perth for $59 million.
CBRE’s Peter Agostino and Andrew Woodley-Page negotiated the sale of the A-grade asset on behalf of Primewest to Singaporean real estate fund manager, Mapletree.
The property was part of a portfolio listed for sale by Primewest earlier this year, with other assets including a 50% interest in a St Leonards office tower in Sydney and five additional office assets in New South Wales, Victoria and Queensland.
Listed for sale via Expressions of Interest, the West Perth landmark building comprises 6,864sqm of commercial space over six levels, offering high quality office accommodation with versatile floor plates of approximately 1,400sqm. The property also offers excess land for further development in the future.
Mr Agostino said the property’s attractive tenant profile and location were major drawcards attracting the buyer.
“Underpinned by a quality blue chip tenant on a long term lease, this property represented an attractive opportunity to gain a presence in one of Perth’s most sought after business districts,” Mr Agostino said.
“Opportunities to acquire a quality offering such as this with guaranteed secure returns are uncommon and as a result, there was a strong pool of interested buyers vying for this asset.”
CBRE sold the property to Primewest in June 2009 for $41.5 million and have retained management of it since.
Primewest’s John Bond said the sale of the portfolio had tapped into the strong interest from local and international institutions, as well as large scale individual investors seeking high value, quality Australian assets.
“With low interest rates, a relatively strong economy and a great diversity of property markets across the country, Australia is a very appealing destination for international investment,” Mr Bond said.
“This sale is testament to the strength of the market and the evidence of how Australian commercial property offers the right fundamentals for investors looking to inject capital offshore.”
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