Bunning entity, building veteran buy industrial site

A 1.08-hectare industrial site in Osborne Park has changed hands for the first time in 27 years, selling to a Bunning family connected entity and building industry veteran for $6.65 million.

Pauline Scurria, of St Kilda, and the Babic family of Applecross, sold 60 Roberts Road to Absolon Street Pty Ltd, after purchasing the asset for $325,000 in September 1995.

ASIC lists Gavin Bunning - whose family established the business known as Bunnings - and Doubikin Holdings Pty Ltd, owned by builder Ronald Arnold Doubikin and Dale Doubikin, as the majority shareholders of Absolon Street Pty Ltd.

Mr Doubikin ran Doubikin Constructions and was Master Builders of Australia WA president from 1988 to 1989 and MBA national president from 1994 to 1996.

Raine & Horne Commercial's commercial agency director Anthony Vulinovich brokered the deal after a six-week campaign.

“Industrial commercial opportunities of this scale so close to the Perth CBD are generational assets in terms of the rarity and having significant economic development scale when an owner decides to activate that pathway,” Mr Vulinovich said.

Mr Vulinovich added that the property was particularly unique given its large scale and proximity to the northern section of the new Herdsman Glendalough structure plan, which includes plans for that area to be zoned for light industry.

The asset has about 16 per cent site coverage, with a 1,743 square metre building on the 1.08ha site.

Telstra, CNW Electrical Wholesalers and Northfleet Transport currently occupy the site, with existing leasing agreements returning about $225,000 in annual rental income excluding recoverable outgoings.

This represents a 3.38 per cent yield on the $615 per square metre sale price, with a three-year weighted average lease expiry.

Ridgelink Holdings Pty Ltd, owned by SSB Engineering Pty Ltd’s Steven and Sandra Bowins, Zamdor Pty Ltd, owned by Rodney and Marilyn West, and Inglemere Nominees Pty Ltd, owned by Deidre and Kevin Spark, are listed as owning a combined 17.4 per cent of Absolon Street Pty Ltd.

In addition, Margaret Purdie, of Rance Corporation owns an additional 17.4 per cent.

Mr Vulinovich said the price was reflective of the land area, rather than the lettable space.

“The average price for land in Osborne Park is $800 to $1000 a sqm, but this sale achieved less due to the nature of the site,” he said.

He said the site carried significant potential, but the buyers would need to wait until the leases on the property expired to progess any plans. 

Mr Vulinovich added that the property drew widespread interest, with more than 40 initial enquiries.

“The campaign attracted attention from sophisticated investors and local developers who were looking to secure a premium site within this hotspot,” he said.

“The property also offered the benefit of pre-development income albeit on a holding basis which either appealed to or polarised some of the buyer group.

“The successful buyer was acceptable to the current leases and is set to explore multiple development options given any commercial or hybrid warehouse-based development would be in demand due to the property’s inner metro ring location.”