Transport companies have swooped in on bus depots in Canning Vale and Midvale.
A group of directors linked to Swan Transit have sold two bus depots for a combined $21.7 million to separate transport companies.
St Property No 2 has divested a 3.25-hectare industrial property at 279 Bannister Road in Canning Vale for $16 million, to Jamieson Australia linked entity Wagil Pty Ltd, RP data shows.
Jamieson Australia operations manager Angus Gilsmore and general manager Michael Gilsmore are listed of directors of Wagil on ASIC.
It is understood the Adelaide-based transport design and manufacturing business intends to hold the asset as an investment.
Additionally, St Property Management has sold a 9,196 square metre site at 14 Rothschild Place in Midvale to VPL Transport for $5.7 million.
Both sites have leases in place to the Public Transport Authority, with the Canning Vale lease in place until next year and Midvale’s until 2028.
The transactions form part of Swan Transit’s divestment of its real estate portfolio, following Transit Systems Group’s (then known as SeaLink) acquisition of Swan Transit in 2019.
Transit Systems Group founders Neil Smith, Graham Leishman and Lance Francis are the directors of St Property, jointly owned by Finchton Enterprises, Relay (Australia) and Windfury, ASIC shows.
Transit Systems Group operates as Swan Transit.
The Canning Vale property, which has 2,662sqm of gross lettable area, was sold on a 7.34 per cent initial yield, $492/sqm land rate and $1.17 million net passing rent.
The Midvale depot attracted a 6.02 per cent yield, has 1.22sqm of lettable area and $391,232 net passing rent.
JLL head of logistics and industrial Matt Brunsdon and JLL logistics and industrial associate director Chris Monterosso brokered both deals.
Mr Brunsdon said there was strong demand for both assets, with the Canning Vale property attracting dozens of enquiries.
“The investment opportunity was highly sought after generating over 40 enquiries with multiple offers received resulting in the property selling prior to the campaign close date,” he said.
“The existing improvements, unprecedented exposure to Roe Hwy and location was well suited to transport and heavy equipment-based occupiers, with holding income and low site cover providing value add optionality.”
He said the Midvale property provided an opportunity to “secure a strong leased investment in an established industrial pocket of Midvale providing optionality for prospective owner occupiers”.