Fremantle's premier office complex, Customs House, is for sale through Colliers International and Perman & Associates. This award winning, three-level office development has a net lettable area of 8,276 sqm and secure parking for 59 vehicles and a net income in excess of $1.55 million. The building was constructed in 1987 to Commonwealth standards and its unique design includes the retention of five historic facades to Henry and Phillimore streets. Australian Custom Service, which occupies 5,455 sqm, has recently extended their lease to 2012, with two five-year options, and the balance of the building is leased to other Commonwealth and State Government tenants including; Department of Social Security, Commonwealth Rehabilitation Services and Department of Health. Since completion, Customs House has maintained a 100% occupancy rate, primarily because of its strategic location in the Port City. Colliers International’s, Reece Cocks said the Customs House wass an excellent investment offering and represented the best office building in Fremantle. Strong investor interest was expected from high net worth individuals, syndicators and smaller institutional investors. According to Perman & Associates Principal Bob Perman, Customs House has all the best investment attributes – it has been superbly maintained, has a secure cash flow and design flexibility. While the building still has a long life as an A grade office building, it has future conversion potential and could accommodate a trendy inner city apartment development or even a university campus. The Fremantle Port Precinct is currently the subject of a major State Government development initiative. Fremantle has approximately 80,000 sqm of office space, making it the largest office market outside the Perth CBD and West Perth. Recent sales show that there is strong demand for buildings in this price range, which offer secure long term income. The high level of demand has seen a fall in the yields paid for this type of property. Some of the major recent sales for buildings in a similar price range include:
Building | Sale Date | Sale Price | NLA | Price sqm NLA | Initia Yield |
179 St George Terrace | June 03 | $11,100,000 | 4,252 | $2,611 | 8.10% |
Telstra Building 80 Stirling Street, East Perth | April 03 | $15,500,000 | 19,775 | $1,568 | 9.49% |
Alcoa House Marmion Street, Booragoon | March 03 | $17,350,000 | 9,554 | $1,818 | 10.00% |
1 Havelock Street | February 03 | $14,250,000 | 5,010 | $2,844 | n/a |
50 Colin Street | July 02 | $11,200,000 | 4,160 | $2,692 | 8.50% |
10 Kings Park Road | June 02 | $7,700,000 | 3,101 | $2,483 | 9.00% |
14-16 Parliament Place | April 02 | $10,837,500 | 3,000 | $3,613 | 8.00% |
Zurich Building 66 Kings Park Road | January 02 | $14,000,000 | 4,602 | $3,042 | 8.98% |
