30/09/2010 - 00:00

Coles sale to set new record

30/09/2010 - 00:00

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AN industrial site in Canning Vale tenanted by supermarket giant Coles Group is set to become a record transaction for the Perth market, with an expected price tag upwards of $80 million.

Coles sale to set new record

AN industrial site in Canning Vale tenanted by supermarket giant Coles Group is set to become a record transaction for the Perth market, with an expected price tag upwards of $80 million.

The property, at 2 Bannister Road, is being offered for sale by expressions of interest for the first time and will be jointly marketed by CB Richard Ellis and Colliers International.

The land is at present a distribution centre fully leased by Coles Group until October 2016, and is currently owned and managed by private mandate by Colonial First State Global Asset Management’s property division.

The site currently generates net passing income of over $7 million per annum.

The 16.2 hectare facility comprises 83,243 square metres of office and warehouse space and the land is zoned for general industry development.

Colliers International director of industrial Wayne Chorley said the site had future upside through potential redevelopment, subject to council approval.

“Given the amount of land the property offers, together with its gateway location the potential is there to reposition for a possible higher and better use down the track,” Mr Chorley said.

“In the metropolitan area right now there is less than 80 hectares of developable freehold industrial land of any real size on the market.

“This is an incredibly small amount of land in a fast-growing and hungry industrial market like Perth, so the opportunity to secure an asset of this size and potential makes 2 Bannister Road a standout.”

Mr Chorley said an industrial transaction of this size and nature was a first for the Perth market, and expected it to draw significant interest.

“With the big market participants now back in the game and looking for opportunities, we anticipate that an asset of this size in a blue-chip industrial precinct such as Canning Vale will draw very strong interest,” Mr Chorley said.

Also in Canning Vale, the industrial property of Bunnings Warehouse has sold for $7.5 million.

The Bunnings Warehouse Property Trust is satisfied with a modest return after acquiring the property in January 2007 for $6.85 million.

Bunnings Property Management Limited general manager Grant Gernhoefer believes this a better option for the company than retaining the property as an investment.

“The sale will allow the reinvestment of capital into existing core assets and potential acquisitions that are expected to provide better longer-term returns for the Trust,” said Mr Gernhoefer.

 

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