- The office and warehouse facility formerly owned by Perron Group sold for over $16M to Westbridge Funds Management
- Site is currently tenanted by Blackwoods, with a WALE of 4.28 years
- Continues strong trajectory of industrial sector, which has seen record-breaking sales and buyer demand in recent times
An industrial site located in Perth’s Southern suburbs has sold for over $16 million, signalling strong buyer demand in the high-performing industrial sector.
The 23,176 sqm site, which includes an office and warehouse facility spanning over 10,000 sqm, was acquired by commercial property investment specialist Westbridge Funds Management.
The deal was negotiated by Tom Iredell of Knight Frank on behalf of previous owner and property investor, Perron Group.
The 41-43 Baile Road, Canning Vale site will remain leased to Blackwoods Pty Ltd, Australia’s largest supplier of industrial and safety products and a wholly-owned subsidiary of Wesfarmers.
Exceeds price expectations as sector thrives
According to Mr Iredell, buyers exhibited strong interest in the industrial asset with the site receiving in excess of 10 bidders during the initial round of offers.
Mr Iredell said the property exceeded price expectations, selling on a yield of 5.03% which will increase to 5.23% with the February rent review.
With a Weighted Average Lease Expiry of 4.28 years, Mr Iredell described the site as having a strong lease covenant which will provide owners with a secure and long-term income stream.
The industrial sector is still flourishing off the back of a record-breaking 2021, when sales totaling over $16 billion more than doubled the previous record.
“The Western Australian industrial investment market is seeing historic yield compression on the back of low interest rates, the emergence of e-commerce, a well-performing mining industry and growing interstate investor appetite.”
Tom Iredell, Knight Frank
“The yield gap between Western Australia and the eastern states is causing increased Institutional investment interest in Western Australian properties and secondary grade assets, driving yields lower for older style, sub $20 million properties such as this facility at Baile Road,” he added.
Prime logistics location
Located 19 km south of Perth’s CBD and under 20 km to both Fremantle Port and Kewdale Freight Terminal, the Canning Vale site offers an excellent central location.
The property also provides convenient connectivity to Perth’s major road network, in proximity to Roe Highway and South Street.
“It’s a well-presented and recently refurbished facility in a prime logistics location within proximity to Perth’s key transportation networks.
“The precinct benefits from high underlying land values and is well positioned for continued regentrification and undoubted growth,” said Mr Iredell.
Westbridge Funds Management Chairman, Damian Collins said the strong covenant provided by Blackwoods Pty Ltd in addition to the high underlying land value makes the Canning Vale facility an excellent long-term investment.
“The recent settlement of the Canning Vale property, is a welcome addition to our Westbridge Diversified Fund No. 4 property portfolio.”
Damian Collins, Westbridge Funds Management
“It fits within the Fund’s goal of building a $100 to $150 million portfolio featuring up to 12 high-quality commercial properties diversified by state, asset class and number of tenants,” Mr Collins concluded.
