This article is from the Australian Property Journal archive
AN industrial development site in Kewdale has sold to a private developer for $16 million, with industrial assets continuing to be a major drawcard as the new year approaches.
The 27,920sqm site at 6 Ferguson Street, around 8km east of the Perth CBD, includes 17,627sqm of vacant and immediately developable land and 239 metres of street frontage to Kewdale Road and Ferguson Street.
While the remaining 10,293sqm is occupied by office and warehouse improvements with 2,021sqm of total lettable area, providing holding income until November 2023.
Tom Iredell and Geoff Thomson from Knight Frank managed the sale campaign, which generated strong enquiry developers and owner occupiers alike, with the eventual sale price equating to a land rate of $573/sqm.
“The property was attractive to a range of buyer types due to its clear development potential while providing holding income in the short to medium term,” said Iredell.
“The location of this well-exposed asset was also a huge drawcard, occupying a high exposure position in the heart of Kewdale within Perth’s core eastern logistics precinct.”
According to Iredell, Kewdale is broadly regarded as Perth’s premier industrial precinct, thanks to its close proximity to transport links including the Kewdale Freight Terminal, Perth CBD, Perth Airport and to other key infrastructure.
“The area benefits from high underlying land values and is well positioned for continued gentrification and undoubted growth as demand for core land increases,” added Iredell.
Iredell also noted the ongoing draw of industrial development sites in today’s market, with the sale price reflecting a record land rate for core industrial sites greater than two-hectares.
“Record low vacancy has caused industrial rents to soar over the past 12 months, driving an increase in land rates as developers and investors look to capitalise on sustained rental growth,” concluded Iredell.
“Demand from owner occupiers is also helping to drive land prices higher as occupiers look for alternative occupation solutions in light of increased leasing costs.”
