Iconic Perth CBD retail sites 319-325 Wellington Street and 105-107 Pier Street have sold off market, marking the first transfer of the properties in over 40 years. Most well known for the popular Wellington Surplus Store, the corner site comprises five contiguous allotments totaling approximately 1,400sqm and has been home to several retail businesses since the early 1900’s.
The history of 333-335 Wellington Street can be traced as far back as its 1897 construction. From 1939 the site was operated as a second-hand clothing store, originally known as Wellington Dealers, that began selling part worn and new army clothing after the Second World War ended in 1945.
The recent off market sale, negotiated by Lease Equity’s Director of Capital Markets, Mr. Luke Pavlos, achieved a sale price of $8.4 million with Mr. Pavlos noting the sale as the most significant transaction in Perth’s East End (Historic Heart Precinct) in the past 24 months.
Situated directly opposite the proposed World Trade Centre and McIver train station with prominent dual frontage to William Street and Pier Street, the sale is one of the latest property shuffles contributing to the revitalization of Perth City’s east end.
Mr. Pavlos said, “Sales for land mark properties of this nature are extremely rare, generally once every 30–40 years. The off market campaign prompted very strong interest from a variety of buyers including local, national and overseas investors and developers.
Mr. Pavlos said, “The off market nature of the transaction was due to the history and the sensitivity of the businesses occupying the buildings”.
“The property was occupied by Wellington Surplus (owner occupiers) and Yoshiya Japanese Restaurant, both institutions for Perth East End in their own right. Wellington surplus has been in the locality since the 1940’s and Yoshiya, since the 1980’s, (a gold plate restaurant). Both have sadly closed their doors to allow the new owner to reposition the asset” said Mr. Pavlos.
This site reflects a significant development opportunity with 5:1 plot ratio, just 250 metres from the under-construction Westin Hotel, 500 metres from the under-construction QT Hotel.
Mr. Pavlos added, “Investment and development demand within Perth’s East End (Historic Heart Precinct) is very strong as it’s seen as an area which is significantly undervalued”.
The precinct has long attracted a negative stigma due to vacant buildings, inactive lanes and anti social behavior which has driven values down compared to the more sort after West end of Perth. Mr. Pavlos added “There is a huge amount of investment underway in the precinct and surrounding”.
The Westin, QT Hotel, the Kings Hotel and the new stadium will have an extraordinary impact to the East End of Perth.
Over 77,000 Tourist visit the Perth Mint Each Year, The New Stadium will accommodate 60,000 people and trade up to 2 days a week, add to that the 320 room Westin Hotel, the six star Como Hotel, the 30,000sqm Justice Department (Cathedral & Treasury Precinct) and a number of residential and student accommodation projects all within a 10 minute walk of the property and you can start to paint a picture of the significance of these developments and the spin off they will have to activation, vitality and capital growth in this precinct. “This is why there are so many significant stakeholders investing in the Historic Heart revitalization program”, Mr. Pavlos added.