The recent State Government announcement of a $584 million redevelopment of the old Treasury and St Georges Cathedral heritage precinct appears certain to revitalise the eastern Mall end of the Perth CBD, with interest in surrounding commercial properties spiking since the announcement according to industry sources.
Incorporating a boutique 6 star hotel redevelopment of the old Treasury building; a new 35 Storey office tower that will become a legal precinct with courts and offices for the Attorney-General and State Solicitor housing up to 4,500 office workers; and a new public library in place of the existing Law Chambers building, the precinct redevelopment will lead to a significant increase in amenity and foot traffic to the area, benefitting surrounding commercial and retail properties.
Lease Equity’s Director of Sales, Greg Radin, is currently marketing commercial office suites in the adjacent Equus mixed use development on the old Cinema City site and has noticed a significant increase in activity from prospective purchasers since the recent announcement.
“Certainly since the West Australian reported the precinct redevelopment a couple of weeks ago, we’ve had substantially more investors and owner occupiers contact us with genuine inquiry, attracted by the massive upside this regeneration of the eastern end of the CBD will bring to the area” he said.
“Whilst we’ve been cautiously telling the market for some time that this was coming and espousing the benefits it will bring to property owners in the immediate area, the official announcement has crystallised it for buyers and we’re now negotiating sales on a number of the remaining units”.
“Inquiry from people involved in the legal profession and associated businesses has been particularly strong given the flavour of the new development and the presence of the existing Law Courts a short distance away on Hay Street. Investor interest has also been strong with excellent future rental growth and capital appreciation anticipated off the back of this increased demand and activity in the area” said Mr Radin.
Commercial property expert, Ben Owenell from Birchwood Property Group, who are developing Equus, says that with approximately 70% of the 8,000sqm strata office component; all but one of the 29 ground floor retail units; and over 100 of the 138 residential apartments now sold, Equus is well on track to achieve full pre-sale status by the proposed completion date of mid 2011.
“The success of Equus to date has been no surprise to us because nowhere else in the heart of the Perth CBD can you buy brand new, fully fitted office suites from 30sqm up to 600sqm in a complex that has the same level of finishes and attention to detail as this”, he said.
“It’s worth noting that the demolition of the Law Chambers Building opposite will mean the views from Equus to the south and the east will increase exponentially for the water facing apartments and commercial offices and for as little as $350,000, firm can be in the heart of the CBD amongst some of the largest companies in Western Australia so it makes sense”, he said.