Foreign investors zero in on Perth office market
International funds managers are taking advantage of the stronger interest in Perth commercial towers to strike deals worth more than $120 million.
In one of the larger plays, the real estate investment arm of Credit Suisse has secured a preferred buyer for its building at 45 St Georges Terrace in Perth’s central business district, with a deal worth about $55 million in train.
The group has drawn the interest of Singapore-based private investment company Redhill Partners, which set up a property unit targeting Perth this year.
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The group says it is focused on sourcing and buying A and B-grade office buildings in the CBD and suburbs as it looks to capitalise on falling values since 2012.
Redhill declined to comment on the St Georges Terrace building, but is investing based on the theory the city will have limited new supply after next year, due to the stabilising commodities price and the shift of suburban tenants to the CBD.
JLL’s John Williams and Nigel Freshwater and CBRE’s Lloyd Jenkins and Ben Younger were appointed to sell the 11-storey tower but declined to comment.
The 10,010sqm office building has several high-profile tenants and has undergone extensive upgrades and refurbishment in the past three years.
Meanwhile British insurance firm and fund manager Standard Life Aberdeen is quietly offering its Perth towers, worth about $70 million, via JLL and Knight Frank, either separately or together.
The group bought 182 St Georges Terrace from Perth-based property firm Hawaiian for $31 million in 2011.
This article originally appeared on www.theaustralian.com.au/property.