This article is from the Australian Property Journal archive
THE Industry Superannuation Property Trust has put a significant industrial facility at South Perth on the market, with an asking price of over $40 million.
The Russell Park Industrial Estate at Henderson is set on a 12.24ha site and comprises nine warehouses with a total gross lettable area of 62,426 sqm.
The property is 100% leased to TiWest Pty Ltd and Patrick BWL Pty Ltd on new five-year leases generating a net income of approximately $3,603,122 per annum.
Savills WA’s James Condon, Miles Rowe and Paul Craig have been exclusively appointed to market this high-profile industrial investment by an Expressions of Interest campaign.
Condon said the Russell Park Industrial Estate presents a unique opportunity for institutional investors to gain high quality exposure to WA’s resources sector.
“These types of institutional quality properties do not come onto the market very often. In fact, we have seen virtually no investment-grade industrial stock transacted in WA in recent years.
“Aside from Charter Hall recently acquiring a 50% stake in the Metcash distribution facility in Canning Vale, there have been no significant industrial transactions over $20 million in WA for the past three years,” he added.
“Investment-grade stock is very tightly held and there has been a limited development pipeline of new properties. While institutional investors are keen to gain exposure to WA’s resources-driven economy through quality industrial property, it has been very difficult for them to get their hands on the type of stock they are after,” he continued.
Condon said the nine warehouses on site, ranging from 3,500 to 8,800 sqm, positioned on four titles, provides the purchaser with flexible leasing and future sale options.
“Rents on the property are considered below market levels, ranging between $52 to $60 per sqm net. Importantly there are significant, fixed rental increases within the next 12 months, which will provide very attractive returns,” he added.
The property is 23kms south of the Perth CBD and is strategically surrounded by a number of prominent industrial properties including the Australian Marine Complex and Latitude 32 industrial estate.
Property Review
