07/10/2021 - 14:33

Qube buys $12m industrial asset

07/10/2021 - 14:33

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Qube Property Group has bought a Canning Vale industrial area for an estimated $12 million, as the group aims to expand its industrial offering.

Stratco is the anchor tenant.

Qube Property Group has bought a Canning Vale industrial area for an estimated $12 million, as the group aims to expand its industrial offering.

The Perth-based group purchased the 1.4 hectare site on the corner of Bannister and Vulcan Roads from the property’s anchor tenant Stracto, who secured a five-year lease from Qube.

The remainder of the property is leased by new and used boat dealer Aquasports Marine, and Industrial Power Tool services, who entered five-year leases in 2020 incorporating 3 per cent annual increases.

The property has a weighted average lease expiry of 4.5 years at acquisition.

Qube partner Geoff Davieson said his company was drawn to the asset’s strategic location, in one of Perth’s main industrial suburbs.

“In addition to Stratco, which is one of Australia’s best known and long-established family companies dating back to the 1940s, the other tenants are all geared to the resilient home improvement, trade services and leisure markets, each of which have performed strongly throughout the Covid impacted period,” he said.

“It’s a quality building which was significantly refurbished, most recently in 2019 and is located on a high exposure site with around 20,000 passing vehicles per day."

He said the asset generated a year one return eight per cent for investors, with a potential rental upside at lease expiry.

Mr Davieson said Qube was actively looking at commercial development opportunities after a few years of prioritising other market opportunities.

The capital raise for the acquisition sought $6.25 million, which closed oversubscribed in less than a day - with the volume of registrations from investors more than three times the equity requirement.

 

 

 

 

 

 

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