Industrial markets in Perth are flying highlighted by the $32 million sale of a major estate in Canning Vale in the city’s south recently.
“The 7-Hectare industrial site with multiple street front addresses and multiple tenancies was secured by Hesperia, a Western Australian-based private property management fund,” said selling agent Anthony Vulinovich, Director, Raine & Horne Commercial Western Australia. Anthony sold the property in tandem with colleague Jack Divitini.
“A major appeal of the property is that it comes with current income on a lease back basis via a low site cover ratio that enables a big development upside for the new owner over the next 5-year period.”
The mega sale also landed Anthony and Jack the award for the Highest Transaction at the recent Raine & Horne 2022 National Awards, compered virtually by Channel 10’s Studio 10 co-host Sarah Harris.
In a major night of wins for the WA commercial powerhouse, star agent Daniel Romeo was named Commercial Top Salesperson for Number of Sales and Commercial Top Salesperson Leasing Number of Leases.
Anthony said, “We are winning awards because we are very busy but also because over the last few years, we have built a very close-knit team that supports each other and feeds off each other’s successes.
“We have been able to maintain the momentum we began over seven years ago by selectively adding members who are team and client oriented.”
To illustrate the team effort at Commercial WA, Anthony’s fellow director Terry Menage recently sold a shopping centre in a northern coastal suburb of Perth that comes with a major retailer as its anchor tenant that sold for a price in the mid $30 millions. This excellent investment built on 1.3 hectares also comes with 18 additional retail and medical/ allied health tenancies.
Terry and Matthew Edwards from Commercial WA are also combining to sell 80 - 82 Scarborough Beach Road, Scarborough. Located within the 'Beach Road Main Street' precinct, the property straddles two titles and enjoys a 40+ metre frontage to iconic Scarborough Beach Road. Fully leased with a gross income of $313,790, this property will appeal to investors and developers alike, Anthony noted.
“To be fair, low vacancy rates and a lack of expansion opportunities are not only driving industrial markets but also fringe commercial markets via change in workplace requirements in Western Australia,” he said.
“As a consequence, demand is flying and is value that is catching the eyes of eastern state investors.”
Anthony said interstate investors are zeroing in on Perth for several reasons including, from a value perspective WA did not enjoy the eastern sea boards 2015-2019 price jump, our values have jumped since Covid re set values but we started from a lower base so comparatively we are better value.
In addition, the supply chain network has fundamentally changed to just in case warehousing across the country so business’ that are nationally represented have now looked to have a physical WA presence where in this past it was distributed when required or 3PL’d.
From a yield, growth and risk perspective WA is still at the affordable end of national property spectrum and should be very much of interest to the wider Australian Market not just the WA Market.
For all your commercial property sales and leasing needs in Western Australia, contact Raine & Horne Commercial Western Australia on 08 6444 7200.