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BlackRock to sell Perth office campus Optima Centre for about $125 million

March 13, 2018

BlackRock is to sell theOptima Centre, a two-building office campus in Perth. Photo: Supplied

Funds management giant BlackRock is offloading its two-building office campus, Optima Centre, just outside Perth CBD, with price expectations of about $125 million.

The fully-leased A-grade suburban office building at 16 Parkland Road in the Herdsmen Business Park, five kilometres from the Perth CBD, has 16,116 square metres of space on a 9459 square-metre site.

One of the motivators for the sale is the recently renewed lease to the main tenant, the WA state government, which will occupy about 83 per cent of the space until mid-2032. Two other tenants Canon Australia and building company ABN Group occupy most of the rest of the space.

With these tenancies, the centre will return a net annual rent income of just over $9 million.

“With blue-chip tenants and fixed rental increases, this contemporary office building has a weighted average lease expiry of 11.8 years and will be of genuine interest to national and offshore buyers wanting to take advantage of Perth’s rebounding office market,” JLL’s Simon Storry said.

Mr Storry is marketing the property with Colliers International’s Adam Woodward.

While Perth office leases have been slow, its vacancy rate has peaked after hitting its highest level in 22 years.

The overall vacancy rate in the Perth CBD fell by 1.3 per cent to 19.8 per cent in the six months to January this year, and is turning a corner after suffering the effects of the mining downturn, Property Council of Australia data shows.

Investors creeping back

The Department of Treasury has also forecasted the WA’s gross domestic product to grow on the back of rebounding commodity prices.

Various investors and developers such as Stockland and Far East Consortium have crept back into deals in the West Australian capital.

Optima Centre, which has views over Herdsman Lake and Perth city, is made up of the 2611-square-metre Building A, home to Canon and ABN, and Building B, which is occupied by three WA government departments.

The two buildings share a secure car parking area for 500 vehicles.

Herdsman Business Park has been earmarked to expand in a high-density, mixed-use area with frequent public transport and more public spaces.

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