Sales Analysis – 144 Stirling Street, Perth

Property Location

The Hatch Building is located on the intersection of Stirling and Newcastle Streets on the northern fringe of the Perth CBD. The property is adjacent to the Graham Farmer Freeway, has views to the city centre and is within walking distance of the main railway station.

Property Description

The building is a 4 story modern A-grade office building which was extensively refurbished in 2001, with further refurbishments in 2011. The ground floor consists of a foyer, cafe, gym and end-of-trip facilities as well as office accommodation. The three upper floors consist of office accommodation. There is also an adjoining two level warehouse of approximately 1,563 square meters. The property has a total net lettable area of 11,042 square meters.

Tenancy and Leasing Information

The Minister for Works occupy just over 75% of the building (including direct and sub-lease areas from Hatch). The majority of the remainder of the building is leased to engineering services company, Hatch. The building is 98.5% metres.

Comments

Our analysis of this transaction is based upon the tenancy position at the date of sale and not on the tenancy position at the date of listing for sale.

Sale & Tenancy details

Sale Price $54,940,000
Sale Date July 2017
Purchaser Centuria
Vendor Charter Hall
Vacancy (by area) 1.5%
WALE (by area) 3.7 years
WALE (by income) 3.9 years
Net Lettable Area (NLA) 11,042 m²
NABERS Rating 4.5 star
Gross Passing Income $6,262,691 p.a.
Gross Market Income $6,203,408 p.a.
Adopted Outgoings $1,134,878 p.a.
Net Passing Income $5,127,813 p.a.
Net Market Income $5,068,530 p.a.

Analysis

Passing Yield 9.33%
Passing Yield (fully leased) 9.49%
Market Yield 8.37%
IRR 9.12%
Terminal Yield 8.50%
NLA Rate $4,976/m²
Gross Passing Income $567/m²
Gross Market Income $562/m²
Adopted Outgoings $103/m²
Net Passing Income $464/m²
Net Market Income $459/m²

For further details please contact:

Gavin Chapman - Managing Director
gavin.chapman@pvawa.com.au
(08) 6500 3600

Property Valuation & Advisory (WA)

Unit 2, 168 Stirling Highway, Nedlands WA 6009

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