The transaction caps a wave of sales activity in Perth CBD, with more than $110m worth of property changing hands or in due diligence during the past couple of weeks.

The 119-room hotel, fronting Hay and Pier streets, was sold by Mirjam Norvilas, who has owned the property for about 20 years.

One source said the price tag was short of expectations.

The three-star hotel was previously offered for sale at a reported price of $70m in 2007, but was withdrawn.

The property, known as The Kings Complex, is made up of the Kings Hotel, West and East Office Towers, a ground-floor restaurant and two bars. It also features a multi-storey car park, with 374 bays.

Late last month, 32 St Georges Terrace was sold for about $30m, through selling agent Knight Frank.

The vendor of the 13,000sq m office building is Westmain Corp.

Nearby, at the former Emu Brewery site, negotiations are continuing with a Malaysian property group for a price of about $40m.

The Spring Street site was reportedly owned previously by Turnstone Nominees -- a joint venture between Saville Australia and Babcock & Brown.

Turnstone fell into receivership in early 2008.

In addition, negotiations are continuing for the $130m sale of Dynons Plaza.

Sources said the buyer circling the 14-storey building was German fund Real IS.

The Dynons transaction would be the biggest sale in Perth so far this year.

Dynons Plaza is owned by Singapore-listed Stamford Land Corporation, formerly Hai Sun Hup Group. It is Australasia's largest independent owner and operator of luxury hotels and was founded by CK Ow.

Dynons is located on Hay Street and is fully leased for 10 years from April to major oil and gas group Chevron Australia.

The annual net income of the building is about $9.78m, with a rent review structure that provides for annual fixed increases.

The site was earmarked for a luxury hotel but Stamford opted to build a premium office tower instead.

One industry source said yesterday the building was under contract and the parties had "agreed to some terms".

Swiss pension fund AFIAA Foundation for International Real Estate Investments said recently it was not interested in the property.

Sources also dismissed Singapore real estate investment trust K-REIT Asia as the likely buyer.

Expressions of interest for the 14-storey building -- owned by Singapore-listed Stamford Land Corporation -- closed in May. Stamford, formerly Hai Sun Hup Group, is Australasia's largest independent owner and operator of luxury hotels. It was founded by C.K. Ow.

Savills Western Australia managing director Paul Craig would only say: "We have selected a party and we are in due diligence with a particular party."

If successful, the Dynons deal would be the biggest sale in Perth this year.

The Hay Street building has 13,360sq m of A-grade office space, and is fully leased for 10 years from April to major oil and gas company Chevron Australia.

The annual net income of the building is about $9.78m.