- Murray Street car park is 10 levels and was built in 1984
- Wellington Street car park is six-levels and was built in 1988
- Occupancy and revenue both inspected to increase as WA's border reopens, says GDI's managing director, Steve Gillard
Listed property fund GDI has announced the acquisition of two carparks in Perth CBD for $68.5 million.
With an approximately 5% passing yield, the acquisition highlights the confidence in office occupancy and car park revenue as workers return to the CBD nationally, and as the mining sector continues to bolster the local economy.
The first car park is a 10-level concrete framed car park located at 419-431 Murray Street. Built in 1984, it holds 839 cars. The property is being acquired for $38.25 million, having been independently valued at $38.50 million.
The other property is a six-level concrete framed carpark at 301-311 Wellington Street, built in 1988 for 601 cars. It is being acquired for $30.25 million, exactly what is independently valued for.
Steve Gillard, managing director at GDI, said both carparks are being bought following reduced revenues due to lower occupancy stemming from the pandemic and associated border closure.
“We anticipate an improvement in both occupancy and revenue as the border reopens,” he said.
“We are attracted to the high cash yield the carparks offer and the forecast low capital expenditure requirements.”
The announcement comes the day after WA premier Mark McGowan announced the WA border will effectively open on Saturday 5 February 2022 as the state passes an 80% double vaccination rate.
Mr Gillard also remarked that given the relatively limited new supply of car parking in the Perth CBD, the acquired properties will perform well.
“Both carparks also offer medium term change of use potential, given a significant component of the acquisition price is land value.
Steve Gillard, GDI
“We would be interested in reviewing any further carpark acquisitions that offered similar income, growth and change of use potential.”
GDI will fund the acquisition using by increasing its Principal Facility. Settlement is expected around 22 December.
