Forrest Centre sells to Chinese investors 

In one of Perth’s largest office deals, the Insurance Commission of Western Australia has sold its premium office complex in the CBD for a reported $220 million.

The transaction between the Insurance Commission of Western Australia (ICWA) and YT International, the Australian subsidiary of privately-owned Perth Upper China Hotel, rounds out the Commission’s $800 million disposal of property.

Perth Upper China Hotel is not new to the West Australian market. The company purchased the former Toyota dealership site on Adelaide Terrace in East Perth for $15 million in 2015.  

ICWA’s chief executive Rod Whithear says YT International submitted the most competitive offer. Settlement is expected to take place in March.

The Forrest Centre, which opened in 1986, sits at the western end of Perth’s CBD. Offering uninterrupted views of the Swan River and Kings Park, the Centre’s two freestanding A grade buildings have 31,000 sqm of office space.

The main office building at 221 St Georges Terrace has 30 levels of office space, while 219 St Georges Terrace offers seven levels of office space alongside a gymnasium, swimming pool and tennis court.

In November, the Insurance Commission accepted an offer from Vicinity Centres for two Perth suburban shopping centres – The Shops at Ellenbrook and Livingston Marketplace in Canning Vale.

Whithear says the sale of the Forrest Centre and the two retail assets concludes the on-market property divestment process, with the sale prices of the properties exceeding portfolio valuations.

“We are pleased with the results of the assets sold to date as substantial steps towards a rebalancing of the Insurance Commission’s investment portfolio and implementation of our investment strategy,” Whithear says.

ICWA will consider off-market offers for its remaining directly-held commercial assets: Westralia Square at 141 St Georges Terrace and Westralia Plaza at 167 St Georges Terrace.