An institutional grade industrial investment in Perth’s south has sold for $20 million.
The state of the art complex on an 8.4 hectare island site at 150 Quill Road, Henderson, was developed by Matrix Composites and Engineering to occupy, 10 years ago.
Matrix offered the holding with a 20-year leaseback.
Part of one of the numerous buildings on the site is occupied on a 35-year lease to the Western Australian Land Authority.
All up the asset includes five high truss workshops and warehouses containing a total area of 17,185 square metres.
A two level, 2310 sqm office and 1090 sqm dangerous goods storage facility is also built onto the block, which also has street frontage to Nautical Drive, Sparks Road and Weldings Pass.
Henderson is about 30 kilometres from the CBD.
Deal comes during an otherwise quiet period: agent
The industrial property is selling to Australasian Property Investments Ltd.
Colliers International’s Greg O’Meara said the sale of 150 Quill came during an otherwise quiet period for major Western Australia industrial transactions.
“There were only three transactions over $20 million…last year with two others coming just under that threshold,” the broker said.
“Interstate investors are investigating our market but generally require some scale, preferring not to purchase a single, standalone asset.
“The buyer saw value in the property’s locational characteristics, attractive initial yield, long WALE and long-term value-add development potential’, Mr O’Meara added.
“Western Australia provides excellent value for institutional level investors with returns in WA demonstrably higher than in the East.
“However, with the low cost of money, and a shortage of quality stock in WA, yields are tightening”.
Mr O’Meara marketed the property with colleague Justin Mabarrack,
Elsewhere in Perth, Australasian Property Investments owns shopping centre Ballajura Central – which it acquired from Charter Hall REIT for $13.5 million in 2016.