The recent sale of an office building in West Perth demonstrates that local private investors continue to show strong demand for quality investment property, according to CB Richard Ellis.

A deal brokered by CB Richard Ellis agents Peter Agostino, Andrew Woodley-Page and Peter Arnautovic has seen 6 Kings Park Road, West Perth, sold to a local private investor on a yield of 8.5%.

The $10 million deal followed an expression of interest campaign conducted on behalf of a syndicate managed by Security Capital Corporation and Property Bank Australia.

The property’s total net lettable area of 1552 sqm over three levels and basement car parking for 38 cars is leased Middletons, Werrett Property Group and Insite Logistics.

CB Richard Ellis Managing Director, Peter Agostino, said that there had been very strong interest in the property from local private investors, with more than 70 enquiries having been received.

“Local private investors are attracted to West Perth, which offers a more affordable entry point into the commercial market than the CBD,” said Mr Agostino.

“This result shows the depth of the market that currently exists for quality properties in the $5 million to $20 million range, with several interested parties lodging offers to purchase.”

CB Richard Ellis senior research analyst, Kelly Dyball, said that private investors continue to be the dominant purchaser type at present, in the absence of the wholesale funds who typically bought properties of this nature in 2006 and 2007.

by Mark Bristow : Tuesday, September 15, 2009