Developer sells ex-HQ
Luxury apartment developer John Blackburne has sold an inner-city office held for 33 years and once occupied as the headquarters of his company.
The West Perth asset, 1050 Hay Street, opposite Parliament House, traded for $11.5 million following an offer to purchase campaign which closed in April.
With 2192 square metres, the two level office is 75 per cent leased; tenants include CSE Global, Hillside Meat Processors, Oakfield Strata Management and Piacentini & Son, the latter which also has branding rights.
A rooftop solar array and HVAC system was recently installed at a cost of over $1m.
The 1696 sqm site also contains 55 car parks.
Ex-Blackburne HQ sold
Based on the passing rent, the result for the former Blackburne headquarters reflects a 9.65pc yield.
The asset also carries redevelopment upside, under the City of Perth’s draft Local Planning Scheme No 3, it is identified for high scale mixed-use development with a plot ratio of up to 8:1.
High-rise apartments could be considered (continues below).
“This asset attracted strong interest from investors, owner-occupiers and developers alike,” Sterling Property partner, Jack Bradshaw, who represented Mr Blackburne with Brian Neo and Ray White Commercial’s Michael Milne and Brett Wilkins, said.
“We received close to 65 enquiries and negotiated with multiple parties before the property was ultimately secured by a private local investor,” he added.
“The property’s appeal has always been underpinned by its ability to attract and retain quality tenants…it offers the best of both worlds – excellent on-site parking and immediate access to the Perth CBD allowing businesses to enjoy the amenity and convenience of the city without the congestion of the CBD location,” according to the executive.
Mr Neo said “from an investment perspective, the asset delivers strong holding income today, while in the longer term it represents a highly strategic high-rise development opportunity in one of Perth’s most prominent locations”.
With improving leasing fundamentals, declining vacancy rates and limited new office supply, there’s renewed interest in West Perth, he added.
“Buyers are increasingly targeting properties that provide immediate cash flow together with meaningful future redevelopment potential,” according to the executive.
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