GDI banks premium from UGL factory
GDI Property Group has sold a major Perth industrial investment.
Covering 3.8 hectares across neighbouring sites, 5 and 15 Wood Street, Bassendean (pictured, top), it is banking $29.5 million.
The Sydney based asset manager paid $10.88m in 2014 as part of a $66m leaseback deal with UGL.
That occupier renewed for five years in 2024.
“Urban infill assets of scale, like Wood Street, are exceptionally rare in the Perth market, particularly within genuine inner urban industrial precincts,” Cushman & Wakefield’s Nick Goodridge and Ross Palframan said, upon listing the asset mid-year.
“With a land-dominant value profile and proximity to a high-density population corridor, the property is ideally positioned for long-term value enhancement and repositioning strategies amid sustained structural demand,” they added.
Bassendean is about 10 kilometres north east of Perth’s CBD.
The Wood St deal comes nine months since we reported GDI sold Perth’s only IKEA store, at Innaloo, to the occupier, for $163,75m – a c$20m uplift on what it paid in 2018 (continues below).
5-15 Wood Street
GDI offered 5-15 Wood St, part of the Tonkin Industrial Estate, mid-year
It was one of six assets held by the GDI No 38 Trust.
Following settlement and other sales, that fund retains one asset – a 16ha industrial estate in Sydney’s Bankstown.
“The significant increase in value of the Bassendean Property is partly attributed to the new…lease that UGL Pty Limited entered on 1 October 2024, providing GDI No. 38 Trust with the opportunity to capture market rents which had risen beyond the prior contracted rents,” a spokesperson for the seller said.
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