Humich makes puts retail revamp on the agenda in latest Perth play

Humich Group has bought the site at 96 and 110 William Street, and 255 Murray Street Mall in the Perth CBD

Randal Humich’s private development outfit has swooped on a major retail development site in Perth’s central business district as it backs a recovery in city trading.

Cities around the country are regaining their step in the wake of the pandemic, and the WA capital is viewed as well-positioned due to its strong resources economy and the vacancy staying in check.

The private Humich Group has just bought a site comprising 96 and 110 William St and 255 Murray Street Mall in the heart of the city from JJ Leach Group, for $48m.

The property was marketed by RWC WA agent Brett Wilkins. It comprises three tenanted buildings with a total floor area of 4067sq m and was sold on a passing yield of 4.89 per cent.

Mr Wilkins said the deal was the biggest property sale in the Perth CBD so far this year.

“Humich Group have been in recent years the most significant purchaser of CBD retail property, and the adjoining owner on William St and Murray St Mall,” Mr Wilkins said. “This property is at the epicentre of Perth CBD, located on the best city retail corner, with passing pedestrian traffic of 9.9 million annually.”

Mr Wilkins said the site provides strong holding income, with the current buildings occupied by both national and international tenancies.

“It provides great opportunities for development,” he said. “Various development concepts and plans have been prepared highlighting the potential for a 10-level development with a gross building area of over 12,000sq m.”

The Humich Group has been active and last year bought one of the Perth CBD’s most popular late night burger joints, picking up the Hungry Jack’s store at 92 William St for $10m via agency Cygnet West.

The price on that asset showed a passing yield of 4.85 per cent.

Humich Group is also pursuing plans for a $160m tower on Barrack St in Perth. It filed plans for a 22-storey multi-use tower that will see part of the city’s Hay Street Mall overhauled.

The plans would see 18 levels rise above four levels of basement parking. The tower would start with a two level podium, which would connect to the upper levels of the neighbouring heritage buildings to form a cultural hub, according to the developer.

Perth’s CBD office market had 22,300sq m of net absorption over the September quarter and 72,700sq m over the 12 months to September, JLL said.

While Perth’s headline vacancy rate remains elevated at 17.3 per cent, vacancy is now at the lowest level since late 2014.

JLL said that Perth had performed strongly over the past two years and noted demand had spread beyond the resource sector, and the office market was also being driven by the public sector, finance, and professional services firms.

Humich Group have been in recent years the most significant purchaser of CBD retail property