Perth office market action ramps up
Listed property investment and funds group GDI is stepping up its push into the Perth market and is in talks to buy the city’s Durack Centre that diversified major Stockland put on the block for about $110 million last year.
The move continues a run of deals of Perth towers that saw fund house EG recently pick up 2 Mill Street for $79.05 million and the Centuria Metropolitan REIT buy William Square from Warrington Property.
The Durack Centre was marketed by CBRE and JLL but they did not comment and Stockland said it did not comment on speculation.
The property comprises a 13-storey building with 140 carparking spaces.
The complex includes a second building at 2 Victoria Avenue, now known as Optus Centre. This building holds a 5-star Green Star As Built rating and has new end-of-trip facilities. Both buildings sport large floor plates and extensive views across the Swan River.
The leasehold buildings were picked up in 2006 and cost Stockland $114.1 million, including additions.
The complex spans a net lettable area of 25,187sqm and a weighted average lease expiry of 4.7 years. Major tenants include Jacobs Group, the Australian Bureau of Statistics, Minister for Works (Main Roads), Optus and Linkforce Hire.
GDI is in expansionary mode after turning in strong first-half results and it has had leasing success in Perth, including the WA Minister of Works executing two new leases for 14,522sqm at Westralia Square.
GDI already has two major development plays in the core of the Perth CBD. At Westralia Square, it has increased the size and scale of the proposed development on excess land next to Westralia Square to about 9130sq m over 11 floors.
At its proposed 1 Mill Street skyscraper, where it is working with development major Lendlease, the company is chasing a precommitment.
The company’s funds unit has also been active, securing a $98m portfolio of 17 metropolitan Perth properties occupied by car dealerships and service centres last year. GDI has also used its balance sheet and also recently picked up 180 Hay Street in Perth for $12.59m.
GDI is well-positioned, with only $71 million of drawn debt as at the end of December. It said at its results it had financial flexibility but did not return a call on Wednesday.
Stockland is focused on its largest commercial assets and has been boosting its position in Sydney. In the last half it sold its half stake in 135 King Street and Glasshouse Shopping Centre on Pitt Street Mall, and took full control of the Piccadilly Centre.
This article originally appeared on www.theaustralian.com.au/property.
