April 11, 2018
Source: The West Australian
Singaporean-backed private equity firm Redhill Partners has continued its Perth bargain hunting spree, picking up the vacant but recently refurbished 441 Murray Street for $22 million — a relatively steep discount from its $27 million June 2013 valuation.
The property was sold offmarket by Centuria Capital, a manager of commercial and industrial real estate investment trusts, in a deal brokered by Axia Corporate Property’s Wayne Mitsikas.
Centuria Capital acquired the building when it bought 360 Capital’s property management latform for $290 million in December 2016.
The purchase adds to Redhill Partners joint purchase with Straits of 45 St Georges Terrace for $53 million in February.
The eight-level , 5849sqm, city fringe 441 Murray Street, most recently occupied by WA Police , has been vacant since mid last year.
It has 700sqm average floor plates, 39 car bays, bike storage, shower facilities and tenant storage and its lifts, lighting and air-conditioning systems have all been upgraded.
Mr Mitsikas said Redhill had purchased the building at below replacement value.
“The sale price for the property reflects the quality of the asset and the take-up of CBD office space,” he said, adding it was on an upward trend. “The sale is a win-win for both parties . The buyer is perfectly placed to capitalise on an improving office market.
“The (potential) for future growth has been enhanced through the extensive refurbishment program.
“An increasing number of deals are offmarket so a good understanding of where the quality opportunities exist is essential.”
Mr Mitsikas said Redhill, which has two of its three directors listed in corporate records as being Singapore based and one in Perth, had a track record of maximising property values with hands-on asset and leasing strategies.
The building is listed jointly for leasing with CBRE and JLL.
JLL’s Mitchell White said the large floor plates would suit educational groups. “Our focus is simply on leasing the building ,” he said.