This article is from the Australian Property Journal archive
ALTIS Property Partners, a Barings Company, has made a foray into Western Australia industrial property market, making one of the largest recent single-asset industrial transactions in the city.
Altis has paid $31.5 million for the 9.01ha property at Lots 59 and 403 Bushmead Road in Hazelmere, in Perth’s east, in a sale and leaseback deal with McMahon Burnett Transport.
The off-market transaction was negotiated by Tom Iredell of Knight Frank in conjunction with Mal Ashton of Regents Commercial.
Iredell said the purchase signalled the growing institutional presence in the Perth market.
“Institutional buyers are increasingly being drawn to Perth partially due to the historically low yields on the east coast forcing interstate buyers to look west in search of higher returns.
“A number of major government-backed infrastructure projects are set to enhance capital growth in key industrial precincts, contributing to the overall positive sentiment for Perth located industrial assets,” he added.
“For this property the buyer was also drawn to the location and secure holding income,” said Iredell.
“The two existing tenancies will provide the buyer with substantial holding income, while a development on the unused portion of the site is built,”
In addition to McMahon Burnett Transport, part of the property, which consists of two office and warehouse facilities totalling 6,767 sqm in total, is leased to National Pump & Energy.
Altis plans to develop and hold a circa 13,000 sqm A-grade logistics facility on the vacant portion of the site, totalling 2.86 hectares, expected to be delivered in the second half of 2023. The development will have a sustainability focus targeting a 5-Star Green Star rating.
