Brookfield sells landmark skyscraper in Perth for about $350m

Lendlease’s Real Estate Partners 4 fund and Realside have agreed to acquire 108 St Georges Terrace, an office tower in Perth, Australia, from Brookfield for 350m.

The offer of the St Georges Tce landmark generated significant local and offshore interest, with sharp offers for the Perth CBD landmark tower also coming from local player Centuria Capital.

It was marketed by JLL’s Simon Storry, John Williams and Luke Billiau, and CBRE’s Aaron Desange, Michael Andrews, Flint Davidson and Nicholas Volk. The agents and parties declined to comment.

Standing at 51 levels, 108 St Georges Tce comprises 38,332sq m of A-grade office space, with views over the Swan River, Kings Park and the wider Perth area.

The office tower is complemented by the three-storey, 1897-built and heritage-listed Palace Hotel, with that fully refurbished character-style building sporting character offices, conferencing facilities available for tenants use and ground floor hospitality operated by Meat and Wine Co.

The building also has modern end-of-trip facilities, 103 basement car bays and sits on a sizeable 3891sq m corner landholding on the city’s busiest intersection of St Georges Tce and William St.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

The St Georges Tce tower has only been traded once in 30 years as a full interest, giving the buyer control over a prime grade asset in the heart of the Perth CBD.

It has also benefited from significant building refurbishment and capital expenditure works over the past decade.

The tower was billed as having the capacity to generate core plus returns. It has a weighted average lease expiry of 3.6 years, and no single occupant represents more than a quarter of the property’s income stream, allowing for retention and expansion of existing tenants.

Key tenants include global mining and metals company South32, ASX-listed financial services firm Pioneer Credit, Asia’s third largest office space provider The Executive Centre, and global law firm Norton Rose Fullbright.

The initial burst of deal-making in the city had been led by private players, as tycoons Gina Rinehart and Andrew Forrest got active

Mrs Rinehart picked up a West Perth office from Singaporean real estate fund manager Mapletree in a $60m deal.

In April, Tattarang, the private investment house controlled by the Forrest family, branched out into retail investment, buying Perth’s down-at-heel Carillon City centre for $80m, with plans to revamp it into a world-class shopping precinct.

On the funds side, the private Redgate Capital is targeting the purchase of London House at 216 St Georges Tce from property company Hawaiian for about $102m.

Source: Realcommercial

Can’t stop reading? Read more