Welshpool site hits market

A Welshpool industrial and commercial property, comprising more than 19,000 square metres of warehouse and office tenancies, has been brought to market by joint agents LJ Hooker Commercial Perth and CBRE.

The multi-tenanted property is located on the corner of Pilbara Street and Orrong Road and generates $2 million a year in net annual rent, according to LJ Hooker.

It currently houses a collective of national operators where leases range in sizes from a boutique 129sqm office tenancy to a 5,472sqm office and warehouse tenancy, occupied by building materials supplier Gunnersen.

Additional tenants include Repco, Equip Safe, Solaris Paper and Allpet, with LJ Hooker saying lease agreements had been staggered to reduce vacancy risks.

Offers for the asset will close on November 24.

LJ Hooker Commercial co-principal Matthew Lyford anticipated the property would spark the interest of institutions, interstate and foreign investors hunting out significant assets with reputable tenant mixes.

“This is one of the few large-scale, premier, multi-tenant industrial facilities to test the city market in 2017, and we’re expecting offers to reflect the rarity of the opportunity,” Mr Lyford said.

The agency’s joint selling agent, Wayne Chorley, said Welshpool was in strong demand as an industrial precinct, along with Kewdale.

“Perth saw a decade-high volume of properties change hands last year, but opportunities of this scale have been contained this calendar year,” he said.

“With the benefit of immediate income, the property also offers scope for further repositioning opportunities that could unlock the greater underlying land value”.

LJ Hooker Commercial’s latest Industrial Market Monitor revealed Perth’s prime industrial yields had firmed 10 basis points between early 2016 and early 2017.

It also showed that average prime industrial yields in Perth, in the order of 7.5 per cent, were offering considerably more value than Sydney and Melbourne’s outer suburbs, where yields were 6.4 per cent and 6.6 per cent, respectively.

CBRE senior director Warick Irving said the asset represented an attractive investment opportunity in what he saw as an undersupplied market.

“With limited opportunities for properties like this in Perth, this Welshpool site will generate significant interest from local and interstate and investors looking to capitalise on the Perth market, which is comparably well-priced to Sydney and Melbourne at present,” he said.