Our director Kent was involved with a local family office in the repositioning of a large asset in Joondalup. Details as follows:

• The asset was a gym over two floors with a NLA of ~ 2,000m².
• The tenant had given notice that they were not extending their lease after 20 years. 
• The property had been listed for quite some time at an asking price of $3.9M.
• A strategy was developed to purchase the property, reposition it for medical/office use, and then sell it for a profit. 
• The property was acquired for a purchase price of $3.25M in February 2019.
• Refurbishment costs were ~ $1.5M which including filling in old pools and removing change rooms, adding lifts etc.
• The property was then leased to two new tenants at a net rent of ~ 500k p.a.
• The property was then sold by a local agent off market to an east coast fund for a purchase price of $10.3M in December 2021.
• It was an exceptional result giving rise to a ~ $5M profit in less than 2 years.