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Lester Group Acquires prime Subiaco Office for $12.75m
Perth – WA based property investor and syndicator Lester Group has successfully acquired all three strata titles of the building located at 541 Hay Street, Subiaco for $12.75mil.
The off-market deal was brokered by Wayne Lawrence, Partner at Cygnet West. Mr Lawrence facilitated the negotiations, resulting in Amana Living selling two strata lots they owned on a seven-year leaseback, and an entity linked to building firm Northerly, selling the top floor which is currently occupied by two tenants.
The 2010 constructed building was built by Northerly and has been home to Amana Living since its completion. Northerly had also previously occupied their strata lot before leasing their space to Lance East Office.
Mr Lawrence commented “the complex deal was 6 months in the making and having two vendors involved, one of which is a not-for-profit, certainly required a fair bit of patience on all sides”.
The acquisition highlights the ongoing demand for quality property in the current market. Mr Lawrence added “there has undoubtedly been a resetting of prices in the office market, but the buyers are still active, particularly for assets with strong fundamentals.”
Russell Lester, Director of Lester Group expressed the groups’ enthusiasm for the acquisition. “The building’s prime corner location, striking architectural façade and long-term leases offer a promising avenue for sustained growth and value creation. Impressively it was one of the first suburban office buildings in WA to attain a 5 star Green Star certification.”
“We recognised Subiaco’s recent revitalisation and reestablishment into a vibrant commercial hub.” Lester continued. “Together with the resetting of pricing in the market certainly attracted us to the opportunity”.
Mr Lawrence supported this statement saying, “there has been a noticeable increase in businesses moving to office space in Subiaco resulting in a tightening of the office vacancies similar to what we’ve seen in West Perth.”
The deal will see the investment yield an expected 7.7% in the first year for Lester and their syndicate co-investors.
ENDS