A high-profile Perth CBD office building, 181 St Georges Terrace, hits the market this week, with expectations of a highly competitive expressions-of-interest campaign, as an increasing number of investors look to capitalise on the WA capital’s yield spread and positive leasing market.

The mixed-use property is 81 percent occupied by blue-chip anchor tenant, DOF Subsea.

Savills Australia’s Paul Craig, Graham Postma, Nick Charlton and Barney Dear have been appointed to market the asset, saying they expected interest from local and offshore investors.

“We anticipate a high level of interest from Australian buyer groups and offshore capital groups – particularly those from Asia,” Mr Craig said.

“Private high-net-worth individuals and syndicators who are on the lookout for well-let, well-located investments on St Georges Terrace will also be interested.”

The building comprises 3,176sq m of office space and 414sq m of ground-floor retail space, and is being sold with a WALE of more than six years.

“The low capital expenditure requirements after substantial investment from Charter Hall and DOF Subsea, and the Weighted Average Lease Expiry of 6.3 years by income, make this a secure proposition for investors,” Mr Postma said.

He went on to say that the “truly core” CBD location would be another key selling point.

“Its proximity to the absolute heart of the city, which is considered to be around the amenity of Brookfield Place and Central Park, ensures it will be a highly sought-after investment,” he said.

“The lack of stock and scarcity of quality sales listings in the market is seeing well-let, well-located assets fetch premium prices.”

Mr Postma said the continuing downward trajectory in Perth’s vacancy rates had further indicated to investors, particularly those based on the east coast, that the city’s recovery was “fully underway and now showing real results”.

Expressions of interest close 2pm 3 April (AWST).

Learn more about Savills Capital Transactions.