An office leased to Services Australia in Perth’s inner south east Victoria Park has been sold by the developers – six country based families – which built it for the occupier in 1989.
The $8.75 million result for 117-121 Shepperton Road reflects a 6.7 per cent net yield.
On 4082 square metres, the land is the subject of a planning scheme amendment which would allow a mixed use project with high density residential.
The investment was previously on the market in October, 2019, asking $9.5m.
“The buyers [two local investors] saw the potential of a very good holding income with a view to develop the large site located at the highest point in Victoria Park,” Knight Frank marketing agent Tony Delich said.
117 Shepperton Road
Over a floor, 117 Shepperton Rd contains 2352 sqm of lettable area and 98 car parks, the bulk (84) which are undercover (story continues below).
Occupied by Centrelink, Medicare and the NDIS, it abuts Vicinity Centres’ Woolworths anchored Victoria Park Central shopping centre, near the Albany Highway retail precinct and the local council office.
“The building is close to plenty of transport and amenity, being in a vibrant retail and commercial precinct,” Mr Delich added.
“Given the prominent location and occupancy history we believe Centrelink will remain as a tenant for…at least the next four years but likely longer,” he said.
“At that time, the development market should have stabilised in terms of supply and material constraints and labour shortages, making a development on the site significantly more feasible,” according to the executive.
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