Square Metres: Crown of King St for sale after high profile Perth family lists heritage site after 130 years

The renowned Grayden family is selling a major heritage site on the corner of King Street and Hay Street for the first time in about 130 years. The descendants of former politicians Bill and David Grayden are selling the heritage shops on the 2,372sqm landholding in a prestigious part of Perth. The landholding comprises four separate buildings with 4109sqm of gross lettable space across multiple shopfronts, which over the decades have housed tenants including Prada and Chemist Warehouse. The family trust of owners includes Bill Grayden, believed to still be alive at 105, who was a member of Parliament for six decades and served in World War II. His late brother, also a World War II veteran, was the member for Nedlands before being defeated by Charles Court. The area counts a raft of high-net-worth individuals as landlords, including the Bontempo family, the former Primewest founders and developer Adrian Fini. The precinct is a rarity in a city where institutional buyers own increasingly large swathes of Perth. The buildings, which include the Ackroyd and Harpers buildings at 26–38 King St and 810–824 Hay St, are among the most historically significant in Perth. The property — being sold via CBRE’s Aaron Desange and Nicholas Volk — is one of the more significant to list this year. Mr Volk would not reveal the price guide for the property. But The West Australian understands the recent $11.5 million sale of 886–890 Hay Street — a heritage building of smaller scale but similar ilk — suggests the complex will be among the bigger sales in Perth this year. Mr Volk said that with progressive planning reforms underway, he expects the site will one day allow for the heritage-listed façade to be maintained, with a multi-storey building behind it. At present, however, the properties are heritage protected. He said the upcoming ECU city campus and UniLodge student accommodation tower would boost traffic along King and Hay streets, supporting tenant demand and rents. While many luxury brands have vacated King St for Murray St, Mr Desange said it remained a key destination for those squeezed out of Murray St. He said King St — which previously held the crown as the most prestigious shopping strip in the CBD — remained one of the most tightly held precincts in Perth’s commercial real estate market. “Opportunities to purchase assets in this culturally important thoroughfare are extremely rare and we expect to see considerable interest from a range of groups in acquiring what is generational real estate,” he said. Expressions of interest close on October 30. Tower site sale It is rare to find a strata-titled office purchased purely for yield value in Perth’s CBD, with most offices acquired by owner-occupiers. But Knight Frank’s Zach Schreier and Cory Dell’Olio have sold a fully leased 554sqm strata-titled office on level nine of Central Tower, with the $2.9m sale price offering insight into investor expectations. While the lease price for global firm Rider Levett Bucknall was not disclosed, Mr Schreier said the sale price and lease terms reflected the type of returns private investors are targeting from strata offices. The purchaser, a private investor, secured long-term stability through a new five-year lease with options in place until 2032, supported by a brand-new fitout. Mr Dell’Olio said the office’s capital growth was underpinned by the strength of the tenant and its prime location. “The property is situated in one of Perth’s most prestigious business addresses, directly next to Central Park and surrounded by major corporate occupiers,” he said. “Coupled with a brand-new fitout, the asset offered an appealing investment with strong leasing fundamentals that resonated with buyers. These attributes are also expected to underpin long-term capital growth.” Bag a long lease Neighbourhood shopping centres are valued as defensive assets in volatile times, which is why the listing of Dawesville Shopping Centre is expected to capture investor attention. This asset offers not only the security of being a defensive play but also the benefit of an unusually long ground lease, which runs until 2055. The 3253sqm freehold site includes a 997sqm ground lease parking area with 72 on-grade bays. The ground lease extends until January 2055, based on a 21-year lease with a further 21-year option. By then, it may even be used as a parking ground for flying cars. Located 17km south of Mandurah at the corner of Old Coast and Dawesville roads, the 1571sqm fully leased centre serves more than just locals. Its position next to Dawesville Holiday Village and Twin Waters Caravan Park ensures it also captures seasonal trade. Built in 2015, the centre is anchored by IGA, Cellarbrations, TerryWhite Chemmart and a medical centre. Cygnet West associate director of retail sales Matt Davies said the Metcash-secured leases were in place until 2030, with further 10-year options. “The Peel region’s rapid population growth and influx of holidaymakers support both a stable local customer base and significant seasonal uplift,” Mr Davies said. Zoned commercial under the City of Mandurah’s planning scheme, the property also offers “significant redevelopment potential”. Pumped for a fight Could people power stop a proposed petrol station gaining development approval? It follows an application to build an On The Run petrol station in Bayswater, which drew more than 140 signatures on an online petition. Planned for the corner of Guildford Road and Kenilworth Street, the $2.5 million proposal includes three fuel bowsers with six fuelling points, a drive-through fast-food outlet, automatic drive-through car wash, a commercial building and 16 car bays. The council recommended refusal in its responsible authority report to the development assessment panel, citing insufficient information on noise and light impacts to nearby residential properties, and a shortfall in car bays. “The proposed development will affect amenity, including environmental impacts from noise, light and odour,” the report said. “The built form and site planning do not appropriately respond to the existing character of the locality and adjoining residential properties. “It fails to provide activation or interaction with the public realm, and is an inappropriate built form for its setting, given the high fencing and associated blank walls.” Residents who signed the petition argued the proposal “stands against the core community values of Bayswater and Maylands, and it brings with it significant risks we cannot ignore.” Residents’ concerns include increased traffic at what organisers say is “already a busy intersection”, impact on local businesses, air and noise pollution, and tarnishing the area’s “unique character”. The original development application was lodged in October 2023. The applicant is listed as Hidding Urban Planning. Satterley passes on Peel Land developer Nigel Satterley may be fighting for the right to develop Stoneville, but he has passed on a massive landholding in Peel. Satterley sold 108ha of land in the Peel region to a Melbourne-based syndicate called King Road 200, which counts Growland Group as its parent company. King Road 200, which has owned the site since, is directed by Chinese-born Chi Chan. Meanwhile, Mr Satterley is preparing for the hearing into whether he can develop Stoneville, in the Perth Hills, on land owned by the Anglican Church. The battle has been going on for 30 years, with opponents claiming any development was a fire risk.