Sterling Property in conjunction with Ray White Commercial has completed the sale of 1050 Hay Street, West Perth, with the transaction representing one of the more significant West Perth office sales this year.
The marketing campaign generated approximately 65 enquiries, attracted multiple offers and demonstrated strong demand for well-located freehold office assets of scale.
Sold as a freehold asset for the first time in more than 33 years, the two-level commercial office building occupies a prominent 1,696sqm corner site directly opposite Parliament House. The property provides 2,192sqm of office accommodation together with 55 on-site car bays.
The building is approximately 75% leased to a diverse tenant mix including Piacentini & Son, Hillside Meat Processors, TABEC Engineering on a new five-year lease.
The property has benefited from significant recent capital investment, including a new HVAC system valued at more than $1 million and a roof-mounted solar system designed to improve energy efficiency and reduce operating costs.
Its diversified income profile, quality tenancy mix and substantial underlying landholding were key drivers of buyer interest, while the asset also provides flexibility for future repositioning, owner-occupation or redevelopment.
Under the City of Perth’s draft Local Planning Scheme No. 3, the site is identified for High Scale Mixed Use development with a potential plot ratio of up to 8:1, providing significant long-term redevelopment potential, subject to the relevant approvals.
Sterling Property Senior Partner Jack Bradshaw said the campaign highlighted the depth of demand for quality freehold office assets in West Perth.
“This asset attracted strong interest from investors, owner-occupiers and developers alike. We received close to 65 enquiries and negotiated with multiple parties before the property was ultimately secured by a private local investor.
“The property’s appeal has always been underpinned by its ability to attract and retain quality tenants. It offers the best of both worlds – excellent on-site parking and immediate access to the Perth CBD, allowing businesses to enjoy the amenity and convenience of the city without the congestion of a CBD location.”
Sterling Property Managing Director Brian Neo said the sale highlighted the strength of investor demand for well-located office assets offering both secure income and long-term upside.
“From an investment perspective, the asset delivers strong holding income today, while in the longer term it represents a highly strategic high-rise development opportunity in one of Perth’s most prominent locations.
“With improving leasing fundamentals, declining vacancy rates and limited new office supply, we’re seeing renewed confidence in well-located West Perth assets. Buyers are increasingly targeting properties that provide immediate cash flow together with meaningful future redevelopment potential.”
Sterling Property is continuing to see strong momentum across the West Perth and fringe-CBD office market, with this sale adding to a growing number of significant transactions as investor demand strengthens across the office sector.
To discuss West Perth and fringe-CBD office opportunities, contact Brian Neo on 0413 451 766 or Jack Bradshaw on 0432 067 348.
