The shortage of zoned industrial land in Perth has underpinned the success of a new subdivision at East Rockingham.
CB Richard Ellis associate director Geoff Fraser has negotiated the sale of three of four lots in a Mandurah Road subdivision for a combined total of $12.46 million.
Mr Fraser said each of the lots sold for about $200 a square metre, which is arguably the cheapest industrial land in Perth.
“Essentially there are very limited large parcels of industrial zoned land in Perth and therefore we have had very strong enquiry from all sectors of the market,” he said.
“There are blocks for sale up at Gnangara for double the price, which makes Rockingham seem very reasonable.”
In the largest of the three deals, a 2.2-hectare parcel was sold for $4.25 million to the Meneghello Group, which intends to develop a galvanising facility on the site.
Another owner-occupier, the TC Drainage Group, paid $4.13 million for a 2.1ha lot.
Local developer the DevX Group acquired the third, 2ha lot to develop a warehouse and factory complex of up to 10,000sqm.
Mr Fraser said interest in the Mandurah Road land, 40 kilometres south of Perth, had also been sparked by the future development of new outer and inner harbours at Rockingham.
The close proximity of the CBH Grain terminal had helped to generate additional interest from logistic and transport groups, he said.
Negotiations are currently under way with three potential buyers on the remaining 2.5ha block in the East Rockingham subdivision, Mr Fraser told WA Business News.
Other industrial land releases planned for the area include the sale of 18 light industrial lots on Dixon Road ranging from 2,000sqm to 6,000sqm within the ‘element precinct’ of the Rockingham Industry Zone, available in early 2008.
A further three lots, ranging from 1.5ha to 3ha, will be released to the market in mid 2008 in the ‘clipper precinct’.
The Kwinana Industrial Area, Latitude 32 Industry Zone and the Australian Marine Complex at Henderson are nearby.