An East Perth office building with a long-term lease to a Western Australian Government tenant has sold for $10 million.
The five-storey building at 149 Wittenoom Street was purchased by a private investor, Folio 16 BHD Property Holdings Pty Ltd, from Moore 30 Pty Ltd in a deal negotiated by Knight Frank agents Tony Delich and Zach Schreier.
The modern A-grade property at 149 Wittenoom Street has 2,422sq m of net lettable area over five levels and occupies a 999sq m site with 14 car parks and dual frontage to Wittenoom Street and Moore Street.
It is fully leased to the Minister for Works (The Department of Corrective Services), as well as a ground floor pharmacy.
The property has a high quality fit out and has been configured to allow for excellent natural light to all sides with views of the city skyline on the western side of the building.
It has a WALE of 4.74 years by income, a passing income of $899,130 per annum and 4.5 Star Nabers energy rating.
Mr Schreier said the sale reflected the confidence of the buyer in Perth’s commercial market.
“149 Wittenoom Street has a strong covenant, with a State Government tenant providing a secure income stream,” he said.
“The State Government has occupied the building since it was built in 2011, and has two further three-year options following the lease expiry in 2030.
“In the current market buyers are being drawn to assets demonstrating income resilience and long-term investment appeal.”
Mr Delich said East Perth, neighbouring the CBD, offered good growth potential for astute buyers.
“149 Wittenoom Street is just 900 metres northeast of the Perth City centre, and benefits from tree-lined streets throughout the immediate precinct,” he said.
“The building is surrounded by amenity including the remodelled Wellington Square Park, just 60 metres away, and the Claisebrook Cove café strip around 800 metres away.”
Surrounding the East Perth property are other major government occupiers including the Departments of Health, Education and North Metropolitan TAFE, as well as new residential development.
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