Hiap Hoe splashes $90 million on A-grade Perth building
Singapore listed group Hiap Hoe has extended its presence in Australia, this time acquiring an A-grade building in Perth for $90 million.
The off-market transaction, at 130 Stirling Street (pictured below), is the fourth purchase undertaken by Hiap Hoe in Australia and is the biggest sale in Perth since May 2013.
The 5,033 square metre site was held in a Charter Hall syndicate.
The sale was negotiated by Paul Craig and Miles Rowe from Savills Perth office.
Savills managing director of Western Australia, Paul Craig, noted that the sale signalled the entry of a major new international investor in Perth, which "represents a strong vote of confidence in the property fundamentals and future outlook for the market".
Since making its first foray in 2013, Hiap Hoe has acquired three Melbourne CBD assets: 6- 22 Pearl River Road; 380 Lonsdale Street and 206 Bourke Street.
The Perth acquisition is said to be in line with the company's strategy to build up a strong geographical presence in Australia with a diversified portfolio of income – generating assets.
The seven-storey building has a net lettable area of 12,349 square metres.
Hiap Hoe executive director, Tracy Wun, said: “130 Stirling Street enjoys a strong occupancy of 97.7 per cent with a weighted average lease expiry of 5.71 years.”
"Moving forward, Hiap Hoe will continue to opportunistically expand our regional real estate portfolio as we remain focused on quality investment assets with attractive yields just as 130 Stirling Street.”