- Both aquisitions are located in Perth's south
- The insudtrial aquisition was highly sought after by QUBE's internal investor base
- Plans are already in place to subdivide the residential site
QUBE Property, a commercial development agency based in Perth has announced the acquisition of two new assets across both commercial and industrial sectors.
Both are located in Perth’s south, the residential site is in Hammond Park while the industrial lot is in Canning Vale.
Overwhelming demand for the industrial site
In a bid to help fund the purchase of the site, QUBE Property called for expressions of interest (EOIs) from its investor base. The group’s Managing Director, Mark Hector said the company had been forced to close the EOI process within a four-hour period due to overwhelming demand.
The Canning Vale site 15-19 Ilda Road is a well-maintained industrial facility within the Canning Vale Industrial Estate. The current tenant is Industrial Asset Solutions (IAS)
Group, a UGL Limited subsidiary who have recently had its lease extended.
The property’s Weighted Average Lease Expiry (WALE) is around 4.25 years by income. The site’s building covers 1,700 sqm of the site with the remainder of the 1.004 ha used as an open yard.
“The site’s low site coverage of approximately 17% represents significant upside for our investors. Approximately 60% of the purchase price was attributable to land value alone,” he said.
“Its location in a sought-after industrial precinct only adds value in a market where there is a strong occupier and investor appetite for well-located industrial assets of this nature.”
Mark Hector, QUBE Managing Director
“The Canning Vale industrial area is home to a large number of major domestic and international companies and there is now little to no vacant land available in the area for future industrial development, all of which adds significant value.”
Development plans in motion for Hammond Park West acquisition
The residential acquisition in Hammond Park West was purchased from the WA Planning Commission (WAPC), via a competitive on-market sale process and connects the group’s existing landholdings.
The 3.18ha urban zoned site at Wattleup Road is to be developed into 47 residential lots. The project will follow in the footsteps of QUBE Property’s Hammond West, Hammond Grove and Hammond Rise developments, which have produced over 400 residential lots.
Earthworks on the newly acquired site will commence later this year with lots averaging between 311 and 506sqm in size.
Mr Hector believes easing market conditions has seen a trend back towards smaller lots.
“While residential sales have softened off the recent peak, the residential property market in WA is not experiencing anything like the correction that we are seeing on the east coast.”
“The reduced buyer activity and negative sentiment currently being widely reported in the media is, in our opinion, based on east coast data and not what is happening in the WA market, which has a strong resources sector and the lowest unemployment level in the country,” Mr Hector added.
