stratco-qube-property-canning-vale-feature
Image: Supplied.
  • Multiple industrial assets have been purchased over the past few months
  • Canning Vale is viewed as a blue-ribbon industrial location
  • Qube Property has purchased a Stretch showroom warehouse

The appetite for industrial assets is seemingly never ending. In April this year, The Property Tribune reported it to be the most sought after property class in Perth.

Since then, countless industrials assets have been bought, sold, and leased, with Centuria snapping up no end of industrial assets up and down the east and west coasts. In July, Centuria purchased an asset in Malaga, and in September the company purchased a Welshpool distribution centre.

In September, Jandakot Airport went to Dexus and APN Industria (now Dexus Industria), the acquisition comprised 49 properties, circa 80 hectares of developable land, and an airport operating business.

The latest

Subiaco-based Qube Property Group is the latest company to make an industrial acquisition, with the purchase of a fully leased industrial asset in the Canning Vale industrial area from Stratco Properties.

The company has “… largely stayed away from the commercial development market since building WALGA’s headquarters in Railway Road West Leederville in 2014,” said Qube Partner, Geoff Davieson, but is now looking out for more acquisition opportunities both locally and interstate.

The showroom warehouse is located on a 1.4 hectare corner site with street frontages to both Bannister and Vulcan Roads. The property is currently fully leased to three parties including the vendor, Stratco, which will anchor the property with a five-year lease from 2021.

The other two parties include used boat dealer, Aquasports Marine, and specialist tool retailer, Industrial Power Tool Services, both companies have entered into five-year leases in 2020 incorporating fixed 3% annual increases.

Qube site Canning Vale 3
Image: Supplied.

Mr Davieson said the property had a 4.5 year WALE (by income) at acquisition and boasted a strategic location near the Roe Highway access ramp with Bannister Road exposure making it an attractive asset in one of metropolitan Perth’s pre-eminent industrial suburbs.

Brodie Keay, selling agent from Burgess Rawson said: “The market at the moment for this class of asset is extremely competitive and Canning Vale is viewed as a blue-ribbon industrial location.”

“Canning Vale is obviously a key industrial area in what is becoming an increasingly strong local market and we received several offers via invitation for the property.”

Successful capital raising

Mr Davieson said the $6.25 million capital raising closed oversubscribed in less than a single business day, with the volume of registrations from investors more than three times the equity requirement.

“The success of this capital raise is indicative of the continued low deposit rates offered at the major banks, and evidence of the strong investor appetite for assets of this nature,” said Mr Davieson.

“Equity market valuations are also hovering around all-time highs, which is seeing an increasing number of investors looking for exposure to the property market, especially in the high performing industrial sector.

“We’re also seeing the yield spread between WA and interstate investments narrow, which is a clear sign that Perth is certainly maturing as a solid, long term investment destination.”

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