Baron Property Group has purchased a 3,960 square metre site in Perth’s northeastern suburb for $10 million in an off-market deal.
The site, located on the corner of Beechboro Road North and Walter Road East in Embleton, features a BP service station, a Bridgestone Tyre and Auto select outlet and a 380sqm Snap Fitness 24/7 centre.
The deal was negotiated by Alliance Commercial executive sales and leasing Liam Tierney and Alliance Commercial director John Zafiropoulos.
Mr Tierney previously sold the site to the outgoing owners in 2018, since then previous buildings had been demolished and made way for a full site redevelopment.
The property is now fully tenanted, with a weighted average lease expiry of 11.49 years, the sale to Baron reflecting a 5.8 per cent yield.
Mr Tierney said the property’s lease profile and location, as well as its connection to major transport networks like Morley Drive and planned Morley Metronet train station, had made it an attractive investment.
“Combined with the low interest rate environment, WA’s strong economic profile coming out of the COVID pandemic is generating a lot of interest and enquiry, particularly from eastern states investors looking for well performing, lower risk sites,” Mr Tierney said.
“The result also reflects recent demand for service station sites on the east coast with yields ranging from 3.75 per cent to 6.25 per cent.”
The Embleton site adds to Baron’s existing portfolio, which includes an office building at 193-195 Great Eastern Highway, and a data centre at 5 Watts Place in Bentley.
