Primewest acquires 226 Adelaide Terrace Perth
Blackstone has sold an A-grade office building at 226 Adelaide Terrace in Perth's eastern CBD precinct which was part of a portfolio of 11 assets acquired from South Australia's Motor Accident Commission for $500 million in mid-2017.
The 14,391sqm property which is 100% leased has sold for $86 million to John Bond's Primewest reflected a yield of over 11 per cent.
Built in 2010, the property, at the corner of Adelaide Terrace and Hill Street has six levels of A-grade office space with large flexible floor plates and a central atrium offering an abundance of natural light.
The buildings tenants include two Commonwealth Government departments, Italian oil giant Eni and Wood & Grieve Engineers with a weighted average lease expiry of 2.3 years.
The passing rents are higher than market and the lease renewals are likely to bring the yield down over the next few years. Primewest will likely aim for a 7.25% distribution yield whilst using surplus cash to repay debt and build a contingency for lease renewal incentives.