The Exchange Tower in central Perth has sold for $326 million, purchased by the Primewest Counter Cyclical Trust, believed to be acting on behalf of Singapore's GIC Real Estate.
The premium-grade building was previously owned by Primewest and AMP Capital Wholesale Office Fund with a 50/50 split.
Primewest purchased their half in 2016 for $113.5 million. Company director John Bond indicated that the property was originally intended to serve as a four-year counter-cyclical investment. The decision to sell their half, however, came when overseas investors looking to capitalise on Perth’s next growth phase presented strong interest.
Exchange Tower stands 40-storeys tall, located off St Georges Terrace close to Elizabeth Quay in Perth’s CBD. Encompassing approximately 34,479sqm the tower held 37.6% vacancy just two years ago. Today that percentage has fallen to around 12% after extensive works, including ground floor lobby renovations and the installation of new lifts.
Current tenants include engineering group ARUP, Fujitsu, Patersons, Morgan Stanley, Knight Frank, Bain International, Mitsubishi Australia and signage rights tenant, accounting firm RSM.
The new owners intend to refurbish and upgrade the building’s forecourt.