Perth vacancies are at 0.5% Image: Supplied.
Perth vacancies are at 0.5% IMAGE Supplied.
  • Located at 77 St Georges Terrace
  • WALE of 5.8 years
  • Second joint acquisition since 25 Grenfell Street, Adelaide

Centuria (ASX: CNI) and MA Financial have partnered up to acquire Perth’s iconic Allendale Square from Mirvac.

In a 50:50 joint venture, the property was acquired for $223 million on a capitalisation rate of 7.25%

The joint acquisition is also the second between Centuria and MA Financial, in October last year, the companies jointly acquired 25 Grenfell Street in Adelaide.

“Allendale Square provides a great counter-cyclical investment opportunity being acquired with embedded capital value and within a market that benefits from strong tailwinds. Perth has the country’s highest occupancy rate among all capital cities with a 71% occupancy rate and the market is further supported by a strong outlook for tenant demand throughout the medium term,” said Centuria Joint CEO Jason Huljich.

“Furthermore, the property benefits from its close proximity to Elizabeth Quay, which is Perth’s answer to Sydney’s Barangaroo. Significant redevelopment is being completed within the quayside area in the short to medium term which extends across the same period as the Fund’s term. This A-Grade office building provides direct access to the new, rejuvenated waterside precinct while being in the heart of Perth’s CBD.”

Image: Supplied.

Located at 77 St George’s Terrace, the 31-storey office building provides 25,908 square metres of office accommodation and 2,745 square metres of food, beverage and non-discretionary retail space below the tower.

Major tenants of Allendale Square currently include Minter Ellison and WA Bar Chambers.

The property has a 5.8-year weighted average lease expiry and 85% occupancy.

Throughout recent years, circa $62 million of refurbishment works have been invested into the building.

“The calibre of Allendale Square means it is well positioned to take advantage of the flight-to-quality trend occurring throughout the office market,” said MA Financial Group Joint CEO, Julian Biggins.

“This is particularly relevant in a market like Perth’s CBD where the sub-lease vacancy is at its lowest in a decade. Prime quality investments are set to capture growth as rising costs constrain new supply and upward pressure on economic rents increases.”

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