A Perth fund manager has spent $7 million on an industrial investment in that city’s north.
The Malaga site at 380 Victoria Road is trading on an 8.57 per cent passing yield.
Covering 1.51 hectares, the holding includes two fully leased buildings containing 8435 square metres of lettable area.
The weighted average lease expiry (WALE) is 9.5 years.
According to CBRE agents Tom Iredell and Jarrad Grierson, the property location, near the recently upgraded Reid/Tonkin highway interchange, and offering “unprecedented access to the Northlink WA extension” piqued the interest of investors.
“CBRE’s involvement spanned more than 12 months and included leasing up the vacant portion of the site to Turfcare WA in an off-market transaction, structuring a leasing on the balance of the site with the vendor and successfully marketing the property for sale as a fully-leased investment,” Mr Iredell said.
Kresta Holdings Limited is the other occupier.
“The buyer saw value in the property’s locational characteristics, attractive initial yield, long WALE and long-term value-add development potential”.
Malaga is about 13 kilometres from the CBD and 15 kilometres north west of Perth Airport.