04/03/2008 - 11:52

Primewest buys Rockingham bulky goods complex for $7.5m

04/03/2008 - 11:52

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Property developer and syndicator Primewest has paid $7.5 million to secure a bulky goods complex in Rockingham, anchored by retailer Spotlight.

Primewest buys Rockingham bulky goods complex for $7.5m


Property developer and syndicator Primewest has paid $7.5 million to secure a bulky goods complex in Rockingham, anchored by retailer Spotlight.

The latest deal follows Primewest's aquisition of the Country Road building in the Perth CBD for $12.5 million last year and the $57 million purchase of a major site in Bibra Lake, which is earmarked for a business park and bulky goods development.

CB Richard Ellis regional director, retail bulky goods, Jeff Klopper negotiated the sale of the complex, which was recently offered for sale by Becton as part of a seven-property portfolio.

Mr Klopper said the property at 39 Dixon Road was situated close to the Rockingham City Shopping Centre, in an area which was enjoying major residential growth on the back of the WA resources boom.

"Major infrastructure projects such as The Perth-Mandurah Railway and extension of the Kwinana Freeway will benefit the Rockingham area, with the latest census numbers forecasting the population will double in size in the next ten years," Mr Klopper said.

Primewest has bought the Dixon Road property on an initial yield of circa 7 per cent, based on passing net income of $532,328 per annum.

Spotlight occupies more than half of the complex - an area of 2,776 square metres - on a 10-year lease which expires in 2014.

WA Salvage occupies the remainder of the property on a lease which expires in 2011.

 

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