West Perth building sells for $16.57 million

Qube Property Group and Dorado Property have sold a leased office building on Hay Street in West Perth.

The seven-storey building, Binary 1101 Hay, sold for $16.57 million, on a net passing yield of 8.3 per cent to a WA-based private company.

The off-market sale was brokered by Colliers International’s Wayne Lawrence and Tory Packer, who said the sale reflected a rate of $6,600 per square metre, a strong result for West Perth.

“Confidence is gradually returning to the office markets in Perth and West Perth and there is renewed interest in buying leased office buildings,” Mr Lawrence said.

“Importantly, the transaction points to an appetite amongst WA private buyers for substantial office assets.

“We are aware of a number of private family companies in Perth that are keen to invest in offices and have the capacity to transact on office buildings up to $100 million.”

Built by the vendors five years ago, Binary 1101 has a net lettable area of 2,510 sqm and is 93 per cent leased. The building has 27 car bays and a bike storage area. It occupies a 932 sqm site and has five tenants, including oil and gas contractor Saipem. 

Ms Packer said the high yield reflected rents set during the mining boom when Perth’s office market peaked.

“If rents were at the current market level, the yield would have been close to 6.75 per cent,” Ms Packer said.

“The Binary building is walking distance from the CBD and with a 4.5-Star Nabers energy rating, will hold strong appeal for energy-conscious tenants.”

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