Banjo Bond doubles down in Perth CBD
Banjo Bond’s Cosgrove Group has snapped up adjoining CBD retail assets from JJ Leach, which developed them a decade ago on land once forming part of Carillon City.
The deal for 223-225 and 227 Murray Street is worth $35.25m – a 30 per cent discount on expectation when listed last year.
That said, the net passing yield is still competitive: 6.6 per cent based on the rental at that time.
The amalgamation spreads 3007 sqm offering longer-term development upside.
223-225 and 227 Murray Street
The largest of the two storey investments, 223-225 Murray St, collected $18,411,725.
The second property (#227) fetched $16,838,275.
City Beach and Zara are the tenants (story continues below).
JJ Leach’s Jeff Lynch bought the properties which made way for the assets in 2005.
“This is an irreplaceable asset located in the central shopping district of the Perth CBD, with income underpinned by national and international tenants,” Mr Bond, the son of Primewest founder John and grandson of high profile 1980s businessman, Alan, said.
“The property is set to benefit from its proximity to the new ECU CBD campus which is due for completion in 2025 and will bring 10,000 new students and staff to the area,” he added.
Ray White Commercial’s Brett Wilkins was the agent – he said the property is in the heart of Perth’s busiest shopping precinct “with significant exposure to year-round foot traffic”.
Cosgrove was until recently known as PWD.
In August, it paid $74.8m for the HomeCo Midland Centre, formerly the Midland Super Centre, on 4.3 hectares.
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