This article is from the Australian Property Journal archive
MORE than 4.8 hectares of vacant industrial land in Perth’s east has been sold for $20.6 million plus GST to a private developer with plans for a prime warehousing and logistics facility on the site.
Tom Iredell of Knight Frank managed the off-market sale of 26 Central Avenue in Hazelmere on behalf of Metallica Property Development Pty Ltd.
The buyer intends to take advantage of the 48,473 sqm site’s locational characteristics and surrounding transportation routes – it is close to Perth Airport on the main roads heavy haulage network, providing RAV 7 access to Bushmead Road – and develop a 20,000 facility.
Iredell said industrial infill sites of scale were increasingly rare in the current market, but demand remained strong, particularly for well-located opportunities.
“The sale rate of $425 per square metre is significant based on the size of the property demonstrating the demand for development sites of scale in Perth with capacity to house major tenants,” he said.
“Rising rental rates on the back of tenant demand consistently outperforming supply is helping to hold industrial values for development stock.”
Knight Frank’s latest Australian Industrial Review found there had been renewed demand for industrial land in Hazelmere this year, with increases to land values, particularly for larger allotments.
“Hazelmere is also home to larger-scale industrial lots which are becoming increasingly rare in today’s market,” Iredell said.
Elsewhere in Hazelmere, Altis Property Partners last year paid $31.5 million for the 9.01 hectare site with development potential at Lots 59 and 403 Bushmead Road in a sale and leaseback deal with McMahon Burnett Transport, while ASX-listed poultry producer Ingham’s committed to a brand new 10,000 sqm facility within Logos’ $250 million Hazelmere Logistics Estate.
