ICWA continues divestment program

The Insurance Commission of Western Australia (ICWA) is close to completing the sale of its $800 million office and retail property portfolio, leaving only one directly held commercial asset.

The latest sale is of Westralia Plaza at 167 St Georges Terrace, Perth. Chinese investor Zone Q Investments has purchased the property for $87 million on behalf of Far East New Central Investments Pty Ltd.

Zone Q has undertaken several residential projects in Perth including its Pinnacle development in South Perth and a second apartment project on the corner of Aberdeen and Beaufort Streets in the Perth suburb of Northbridge.

Westralia Plaza was completed in 2010 and comprises a 13-storey building with 9800 sqm of office space, 760 sqm of retail space, two levels of basement parking and a ground level public plaza.

The property is fully leased and tenants include Westpac Banking Group, Cisco Systems and HWL Ebsworth.

In November 2015 Vicinity Centres purchased the ICWA’s retail portfolio for $319 million. This comprised The Shops at Ellenbrook and Livingston Marketplace in Canning Vale. And in February this year the Forrest Centre at 221 and 219 St Georges Terrace was sold to Chinese-based YT International for $220 million.

According to the chief executive of the ICWA Rod Whithear, all sale prices have exceeded property portfolio valuations.

“We are pleased with these sale results and the progress made to rebalance the Insurance Commission’s investment portfolio and implement the investment strategy we agreed to 18 months ago,” he says.

The remaining asset in the ICWA portfolio is Westralia Square at 141 St Georges Terrace.