Sterling Property has completed the off-market sale of 8 Richardson Street, West Perth, for $16,800,000 representing a sub 7% yield, marking the second time the asset has changed hands through Sterling Property in four years.
The three-level office building occupies a 1,663sqm site and provides 2,229.20sqm of accommodation together with 44 permanent on-site car bays. The property was acquired in 2022 by the Vendor with 30% occupancy and was quickly repositioned to full occupancy at rental levels that set a new benchmark for the market.
The asset was secured by a private investor who valued the strategic positioning, replacement value and strong tenancy mix within the asset.
Sterling Property Managing Director Brian Neo who concluded the sale said the result reflected sustained demand for well-tenanted West Perth office assets, “Given the positive outlook for CBD fringe offices recently reflected in the latest Property Council report and future proposed higher density changes to the city of Perth’s LPS3, 8 Richardson St could be redeveloped to accommodate a 9,978sqm GFA.”
“This is the second time Sterling Property has transacted this property in four years, which speaks to the relationships we build with our clients and the confidence they place in us to deliver outcomes on both sides of the table.
“We are seeing an increased amount of new enquiry from local, interstate and overseas buyers who target fully leased office assets with strong underlying income and development potential, and this sale reinforces West Perth’s position as a genuine alternative to the CBD for tenants and investors alike.”
Sterling Property Senior Partner Jack Bradshaw said the tenancy mix was central to the campaign’s success.
“A fully leased building with staggered lease expiries and a diverse tenant base, including established resources and mining services covenants, gave buyers confidence in the income profile from day one.
“We’re continuing to see strong interest in West Perth office assets that combine secure holding income with long-term upside.”
The sale adds to a growing number of significant transactions across the West Perth office market as investor demand strengthens.
To discuss West Perth and fringe-CBD office opportunities, contact Brian Neo on 0411 868 486 or Jack Bradshaw on 0439 095 336.
