After helping US investment giant GE Real Estate secure a large number of Australian properties last year, Savills has been awarded the lucrative management rights to 20 of GE’s new Western Australian assets, including Allendale Square.
The property management shake-up is a rare occurrence in the WA market and delivers a significant boost to Savills’ WA management portfolio.
Savills will replace agency NSC Corporate, now Jones Lang LaSalle, as the manager and leasing agent of Allendale Square at 77 St Georges Terrace, and the smaller Allendale II at 12 The Esplanade, from February 1.
The ANZ-anchored Allendale Square featured in WA’s largest commercial property deal of 2006, when GE acquired four A-grade properties across Perth, North Sydney and Melbourne from Cape Bouvard Investments in December for a total of $465 million.
This followed GE’s earlier buying blitz, when it paid more than $200 million to Security Capital Corporation and Property Bank Australia for a portfolio of 19 properties in April.
New properties on Savills’ books as a result of the GE portfolio sales include the Paragon CBD tower and Arcade at 160 St Georges Terrace, 30 The Esplanade, State One House at 172-176 St Georges Terrace, the St Georges Centre at 81 St Georges Terrace, Fortescue House at 50 Kings Park Road, and Scott House at 46 Kings Park Road, West Perth.
GE’s spree also extended into the retail sector, delivering Savills management rights to the McNess Royal Arcade at 611-619 Hay Street Mall, a two-storey retail building at 255 Murray Street, and 1-13 Rokeby Road Subiaco, among others.
Savills WA managing director Paul Craig told WA Business News the company had put in a lot of work over many months to find off-market opportunities for GE.
“It’s so hard to find stock in Perth and opportunities for off-market transactions. I think we’ve put in the effort and shown that we’re capable of doing it and we’ve been rewarded as a result,” Mr Craig said.
It is understood the terms of the management deal with GE are yet to be finalised, however tenants have been notified.
Savills has transacted more than $1 billion in commercial property in 2006 and negotiated leases for office accommodation over 25,000 square metres.
GE Real Estate Australia and New Zealand has reportedly invested more than $2 billion in real estate, financing and equity partnerships since 1996.
