How we reactivated one of Perth CBD’s biggest recent office acquisitions

503 Murray Street in Perth’s CBD is an asset that excited us right back before we acquired it in 2023. Months of due diligence led us to not only see the outstanding building for what it was, but to understand the incredible opportunities it provided us as potential landlords.

In its 12-year lifetime, the building had accrued a slightly dated interior, restrictive floor plates and a lacklustre identity. So, before we offered investment in what became known as Pathway 21 Unit Trust, we asked ourselves: What are the elements of this asset we think are left underdone?

Because, we knew, those were the areas that we could dedicate our time to create value. Not just for us and our investors, but ultimately for the tenant market. 

The four major elements (to bolster relevance)

We knew we had to increase the asset’s relevance. And once we did that, the tenant market needed to understand that it’d been given new life.

There were four main elements we focused on to create value in the asset: 

1. Rebrand and reposition asset
2. Spec fitout of Level 6 with refresh of fixtures and fittings
3. Upgrade male and female End of Trip facilities
4. Refurbish lobby and entrance area

These elements were key to rebirthing this building that’d been labelled one of the biggest Perth CBD transactions of 2023. Here’s how we approached each one. 

1. Rebrand and reposition asset

The market’s perception of this asset needed to change. We wanted the tenant market—the end users—to understand that its new owners had given renewed energy to this asset. 

So, we rebranded. Rather than 503 Murray Street, we decided to give it a name: Westend on Murray. 

Its collateral followed a particular style—clean, light and bold—and its name represented the excellent location on the doorstep of the freeway at the CBD’s western precinct. 

Rebranding was an extremely important step to take to get that renewed interest from the tenant market. 

2. Spec fitout of Level 6

The second item we focused on was refreshing the asset’s interior, fixtures, fittings and features. 

The asset has amazing bones. The property itself is constructed extremely well: four lift shafts, fantastic accessibility on to the freeway (within two minutes), great car parking ratios, good natural light; all those things that ensures a property’s long life. But what we needed to do was refresh those items that make the tenant comfortable. 

The chairs, desks, pedestals, End of Trip facilities, kitchenettes, fridges and microwaves, break out area, greenery… All these and more were the things we needed to bring the asset to life. 

We went on a specific budget of $500,000 to do exactly that. 

We decided the best place to spend our money would be on Level 6. It’s the highest floor, it has the best natural aspect, great natural light and impeccable views of the freeway. If we were going to spend our money, and really get bang for buck, it only made sense to do it on the floor that would pop the most. 

We considered why have we got all this built-form, right in the middle of it, that makes the floor feel small? We wanted it to feel expansive. We wanted the tenant and their reps to walk in and be astonished by the enormous floor plate, allowing them to see from one side to the other in a single line of sight. The kitchen is positioned on the stunning southern aspect, with views of the freeway. 

We felt that this showed the market two things:

1. We’re able to understand what tenants want. 
2. We’re active landlords, willing to spend the money, upfront and on spec, without needing a tenant already occupying the premises. 

3. Upgrading EOT facilities

Third on our list was to refresh the End of Trip facilities. EOT is one of those elements that can really whet the appetite of a prospective tenant. 

Revamping the existing facilities, we installed four showers in the male facilities and another four in the female. There’s now a lift that provides access directly into the female EOT. 

We’ve placed them both on different levels, so there’s distinct access for each. They have fantastic wet areas, brand new basins, taps, faucets and new facilities for washrooms and towel storage. 

We went above and beyond to equip the EOT with all the essentials a building of this calibre should offer the tenant market.

4. Refurbished lobby and entrance area

We took what was a dated, almost residential-style entry statement and went light and bright. We said, let’s show the tenant market just how grand this space is. 

 

We now have a beautiful double volume entrance, accented by a large tree in the foyer’s centre. We activated the adjacent laneway to allow space for a future coffee cart, activating the communal aspect of an otherwise redundant area. 

We ramped the entry statement—because why should there be a delineated access for wheelchairs when everyone could enjoy walking subtly up the ramp? 

We brought greenery into both sides of the entry. We introduced music through a dedicated Sonos player, and we added scents in the air. It’s created an atmosphere that tenants want to be a part of. 

No expense was spared. 

And now, we’ve immediately seen the response in the tenant market. Tenants and their reps are coming back for their second and third inspections, and excitingly they are now putting offers in front of us. 

So, it’s worked.

The fantastic part about the capital work we’ve done—those four key elements we set about completing from the start—is that we articulated our strategy perfectly. We did it within a seven month period, and here we are, immediately enjoying the tenant response to our completed plan. 

It’s an incredibly satisfying feeling for us, and for our investors. And it gives ourselves the faith that we’ve taken the right asset, at the right time. We’ve articulated and understood the works we needed to do to rebirth it. We’ve done what we said we were going to do. And this is the outcome. 

We couldn’t be more thrilled.

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