Primewest buy in West Perth for $33.1m16 January 2020
Warrington Property has sold 66 Kings Park Rd West Perth to Primewest for $33.1m reflecting a yield of 6.6%.
The building is a multi-tenanted office building located at the western end of the prestigious Kings Park Road, adjacent to Perth's landmark Kings Park and Botanic Garden. Constructed in 1989, the building has recently received a comprehensive $6,500,000 refurbishment program which addressed every aspect of the building including electrical and mechanical infrastructure, vertical transport, security systems, lobbies, bathrooms, end-of-trip facilities and amenity deck.
The property was sold fully leased to 12 tenants with a WALE of 4 years and a net income of $2,185,000.
The property is a good example of the ups and downs of the Perth market. Warrington acquired the property for $16.1m in 2017 from Tina Bazzo. At the time the property was 75% vacant following the vacating of Oracle and Zurich the previous year. Tina Bazzo acquired the building from Dymocks Properties (WA) Pty Ltd for $46.5m in 2007 just as the Perth market was peaking. Dymocks had held the building for 4 years, having acquired it for $14m in 2003. Clearly Dymocks and Warrington timed the market well.
The tenant mix and leasing outlook for Perth suggest that Primewest should see further capital growth from this asset, avoid the mistakes of previous investors.
The recent sale was managed by Knight Frank