17/11/2020 - 13:00

Dorado buys into Naval Base

17/11/2020 - 13:00

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Investment firm Dorado Property has bought an industrial property in the southern Perth suburb of Naval Base for $9 million.

The Rockingham industrial property buy marks the second acquisition for Dorado Property in 2020. Photo: Dorado Property

Investment firm Dorado Property has bought an industrial property in the southern Perth suburb of Naval Base for $9 million.

The Rockingham Road property comprises two standalone office workshops of 7,685 square metres across two titles on 19,149sqm of land.

The facility is fully leased until November 2028 to Integrated Container Logistics, a subsidiary of the Mediterranean Shipping Company (MSC): one of the world’s largest shipping and logistics groups.

Dorado Property’s newly established Direct Investments business has been on the hunt for property in 2020, making a $24.2 million play for an office building at 12 Newcastle Street in Northbridge earlier this year.

The Naval Base purchase is the group’s second transaction for the calendar year, with Dorado Property better known for its development finance business, which provides first mortgage and subordinated debt capital to property developers nationally from offices in Perth, Sydney and Brisbane. 

The group said it was increasingly focused on Western Australian opportunities for its direct investment business.

The Naval Base acquisition follows the Westport Taskforce recommendation to the state government for the construction of $4 billion land-backed port at Kwinana, which would be located directly south of Dorado Property’s new asset.

The proposed port would be supported by several associated infrastructure projects, including a new railway network, an intermodal terminal, and an upgraded Anketell Road freight route to connect the port directly to Tonkin Highway.

“The proposed new port and associated infrastructure in coming years has the potential to transform the surrounding precinct into one of WA’s premier logistics hubs, supporting the accelerating e-commerce sector in Australia,” Dorado Property manager acquisitions and asset management, James Khng, said.

“The combination of a global tenant covenant, highly functional improvements, flexible site and strategic location presented a compelling investment case.”

CBRE senior director industrial and logistics Australia Jarrad Grierson negotiated the off-market sale.

The asset’s strong covenant and long-term benefits of the location had made it particularly appealing to buyers, he said.

Mr Grierson said the deal came off the back of $115 million worth of industrial transactions contracted by CBRE in Q3 across 10 properties.

Dorado Property director David Giles said Dorado was excited to have been able to secure a high-quality industrial asset for its growing portfolio.

“The asset has an attractive, secure income profile, and will benefit from the structural tailwinds supporting industrial property,” he said.

“Notwithstanding sector and asset specific risks, we believe that WA is well positioned for future growth and we are actively assessing a number of investment strategies and opportunities here.”

The state’s industrial property market has proved its resilience in 2020 and has been labelled a star performer in the commercial property sector by several industry groups and leaders.

With yields compressing and future limited supply in the pipeline, investors are increasingly vying for the sector’s warehouses, logistics centres and sheds.

Read more about WA’s industrial property market in the latest magazine edition of Business News.

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