In a significant transaction reflecting the strong demand for prime real estate in Perth's CBD, a private offshore investor has successfully acquired 613-619 Wellington Street for $9,788,100 finalising the deal a month prior to end of the financial year.
This purchase underscores the appeal of well-located, high-exposure sites within Perth’s evolving urban landscape.
Strategically situated in a precinct undergoing substantial transformation, the property is poised to benefit from the forthcoming developments of the adjacent Edith Cowan University (ECU) City Campus and the ongoing progress of the Perth City Link project. The site currently provides holding income and offers multiple redevelopment opportunities.
The 845.7 sqm* office space is located on a 1,396 sqm* site, which includes a 827 sqm* warehouse area and 17* secure car parking bays. This prime location is directly opposite the Perth City Link redevelopment, which is projected to attract $3 billion in private investment and $1 billion in government investment upon completion. Key projects such as the Hub Apartments, Dorsett Hotel, Yagan Square redevelopment, and ECU City Campus are already under construction and slated for completion by 2026.
Western Australia's robust economy and population surge have further bolstered the appeal of this investment as the state has experienced the highest population growth rate in the nation at 3.1% over the past two years, driven by overseas migration and the return of international students.
This growth, set against a five-year average of 1.8% to June 2023, marks the largest annual migration recorded for Western Australia within a four-quarter period, coinciding with the residential sector's lowest vacancy rates in a generation at 0.7% (Source: REIWA Feb 2024 & ABS).
The property was sold through Nick Charlton and Ben Younger of Cushman & Wakefield who said during the five-week campaign, the property garnered strong interest, with over 90 enquiries from national and international investors.
Mr Charlton said “A diverse mix of developers, private investors, and owner-occupiers submitted bids at the close of expressions of interest.
"The property in its current format has had speculative fit-out accommodation works recently undertaken. This allows the purchaser to enhance returns through leasing up the vacant space while also being able to add value through future redevelopment" he said.
Mr. Younger remarked, "The CBD landscape is undergoing a dramatic transformation with the new ECU Campus currently under construction.
“This development will bring over 10,000 students to the Perth City Link Precinct, increasing the demand for nearby properties. Many groups are looking to provide student accommodation and build-to-rent options within the precinct. Undoubtedly, this is a game changer for the CBD!" he said.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
