Cashed up Properties & Pathways investors have bought a 14 year old Perth CBD office from a syndicate including developers the Zorzi family and Peter Belcastro.
The vacant seven level, 7299 square metre A-grade building, 503 Murray Street, cost $33.225 million making it the city’s priciest deal this year.
It was formerly on the market in 2019, majority leased including to NEC Australia and WSP, with a $45-$50m guide.
The asset has since undergone a refurbishment including to the lobby and end of trip facilities.
A speculative fit out was also carried out on level six.
The acquisition comes three months since Properties & Pathways sold a Fortitude Valley office, in Brisbane, backed by Torrens University, for $9.725m.
Last year meanwhile, the fund manager divested six warehouse investments for a total $73.5m. Four traded to RF Corval for $45.7m on a 5.98 per cent yield.
Westend on Murray
Properties & Pathways has now branded 503 Murray Street as Westend on Murray and is offering it for lease, preferably as a whole, otherwise from 327 sqm (story continues below).
“We identified 503 Murray St for its outstanding building fundamentals and sought-after location, access and car parking attributes,” the fund manager’s managing director, Cal Doggett, said.
“Our job is to identify value and build a strategy to unlock this value during our ownership period,” he added.
“We are forever grateful for our loyal investor base who supported our vision to rejuvenate this asset and comprehensively reposition it in the improving Perth office market,” according to the executive.
Sterling Property’s Jack Bradshaw acted for the owner, Fairworld Holdings, directed by Nick Zorzi, who also leads luxury builder Zorzi Homes.
Wholesale Securities Investment Management has managed the building including taking steps last year to make it carbon neutral.
According to Property Council of Australia’s July, 2023, Office Market Report, Perth’s CBD vacancy rate is 15.9pc – the second highest in the country after Adelaide (17pc) and well over the national average (12.8pc).
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