Charter Hall has secured an industrial site in Bibra Lake for $22.6 million, in the largest industrial land deal of the financial year to date.
The off-market deal settled last month and included a 10-year leaseback arrangement at an annual rent exceeding $1.9 million.
The transaction represents an 8.5 per cent return on the property. The identity of the buyer was not disclosed.
Colliers director of industrial agency Wayne Chorley said the site, which comprises a 1,100 square metre office, a 14,592sqm workshop and a 7,500sqm yard was a good example of the type of asset sought by institutional investors such as Charter Hall.
“The property was sold off-market very quickly after becoming available and is further evidence of the demand for WA industrial property we are seeing from the top end of the market,” Mr Chorley said.
“There is a renewed focus on the Perth industrial investment market, both from local high net worth players and from institutional buyers on the east coast.”
The deal dwarfs the next largest industrial land deal in the current financial year – the $11.46 million sale of an industrial site at 261-273 Berkshire Road in Forrestfield.
A Naval Base industrial plot on Beard Street sold for $10.3 million, while 2 Murphy Street in O’Connor was sold earlier this year for $9.56 million.
Colliers International research released last month indicated the Perth industrial land sector was set to rebound from a quiet year in 2013, as institutional investors’ interest in the WA market was on the rise.