Scott Parks Osborne Park headquarters offered with attractive leaseback
Scott Park’s Osborne Park headquarters offered with attractive leaseback
| 8 August 2018
One of Western Australia’s largest residential home building and finance groups, Scott Park Group, is offering its Osborne Park headquarters to the market via a sale and leaseback arrangement.
Scott Park Group has appointed CBRE’s Aaron Desange and Kate Foley, conjunctionally with Knight Frank’s Todd Schaffer and Andrew Woodley-Page, to manage the sale campaign for the 16 Frobisher Street property.
The 4,150sqm corner landholding comprises an office facility totaling 3,780sqm, which was completely refurbished in 2015 to accommodate Scott Park Group’s offices and its Redink Homes business.
The property, which also includes 86 car bays, is being offered for sale with a 10-year leaseback to Redink Homes, with the balance (510sqm) leased to Embed International. It offers an annual net income of approximately $1.29 million and a long weighted average lease expiry of 9.1 years.
CBRE’s Aaron Desange said the property offered an attractive mix of investment fundamentals that would generate strong buyer interest.
“With guaranteed income in place for the next decade, the property offers immediate security with scope for future development in one of Perth’s strongest inner-city locations,” Mr Desange said.
“The area has been identified as a major infill development area, with the Herdsman Glendalough Structure Plan Area earmarked for rezoning to mixed use development – paving the way for vibrant urban development incorporating high density residential uses and commercial facilities.”
Knight Frank’s Todd Schaffer said the building would appeal to a cross-section of local and national investors, with its solid income, long 9.1 year WALE, ideal location and capital growth potential.
“This is a very well positioned and well presented office building that underwent an extensive $2.55 million refurbished in 2015,” said Mr Schaffer.
“It has a very strong tenant profile and as a result of the refurbishment comes with significant depreciation benefits. In addition to the future development potential, we expect there will be strong interest from local high net worth investors and syndicators looking for a ‘set and forget’ asset with income security.”
The property is being offered for sale via Expressions of Interest closing September 6.
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