The former Department of Transport building has been sold off-market to a private equity firm for $22m.

Redhill Partners is a private equity firm focusing on countercyclical commercial real estate investments within Australia. The acquisition of 441 Murray Street, Perth has closely followed their February acquisition of 45 St Georges Terrace, Perth for $53.5 million.

Having recently completed a substantial refurbishment, 441 Murray Street is an 8-level office building situated one lot removed from the corner of Murray and Milligan Streets and provides a total NLA of 5,849m² together with 39 secure car bays.

The sale was negotiated off-market through Axia Corporate Property and was acquired from Centuria Property Funds by Redhill Partners and is significant of the improvement experienced in the Perth CBD office market over the last 12 months with groups such as Redhill Partners pursuing assets trading at a large discount to replacement value.

The deal was negotiated by Axia Corporate Property Director of Investment Sales,
Wayne Mitsikas.

Mr Mitsikas said, “the sale price for the property was reflective of both the quality of the asset and the belief that the take up of Perth CBD office space was genuinely trending upwards.”

“The sale is win-win for both parties to the transaction. The Buyer is perfectly placed to fully capitalise on an improving office market and the ability to reposition the asset for future growth has been enhanced through the extensive refurbishment program” Mr Mitsikas said.

“We are constantly aware of the buy mandates and of those who the legitimate purchasers are.”

“An increasing number of deals are being procured off-market, hence a clear understanding and knowledge of active buyers and more importantly where the quality opportunities exist is essential” he said.