More signs that Perth’s office market is enjoying a return to favour were revealed recently with suburban office and logistics specialist Growthpoint Properties announcing successful re-entry to the Perth market.
Growthpoints picked up an A-grade West Perth building (Wellington Central at 836 Wellington Street - previously owned by Investa Office Fund) for $91.3 million, which the state’s office market managing director Tim Collyer said was an “attractive entry point”.
The listed, real-estate investment firm has enjoyed some time in the sun recently as rising rents and property values lifted half-year profits from operations to $86.5 million. The group is responsible for the largest metropolitan office portfolio in the A-REIT sector.
Growthpoints also saw an increase in valuations across their $3.86 billion portfolio, providing a boost of $163.4 million.
“We are exposed to office and industrial sectors,” Mr Collyer said. “Our position in those two markets, at this point in the cycle, is definitely paying off.”
Growthpoints’ new acquisition forms part of a procession of recent office asset transactions in Australia’s western capital. A seven-level A-grade office building at 226 Adelaide Terrace in Perth's eastern CBD precinct recently sold to Primewest for $86 million; and an office tower at 66 St Georges Terrace in Perth’s CBD, sold for $72 million.
Over the past six-months Growthpoint have spent $548 million on acquisitions, developments and expansions. Mr Collyer indicated that the appetites of local and international investors for quality Australian commercial properties remains high.
He forecast “reasonable rental growth” in Sydney and Melbourne’s industrial markets, but was slightly more cautious on the economy.
“There is a little bit more uncertainty in economy in general than there was six months ago.”