Perth industrial property with development upside sells well above price expectations

The property at 122 Sultana Road West in High Wycombe, neighbouring the Perth Airport precinct and Kewdale/Welspool Intermodal terminal, has site coverage of less than 20%, offering huge potential for further development.

The 9,277sq m site improvements include a modern office/workshop/warehouse facility with 2,175sq m of gross lettable area and 4,400sq m of hardstand/yard.

The property, which was offered with vacant possession, was sold for a price exceeding the expectations of $7 million plus GST in a deal negotiated by Knight Frank agents Geoff Thomson and Lachlan Lewis.

Mr Lewis said the marketing campaign for the High Wycombe property was short but high-impact, resulting in more than 150 formal enquiries and multiple offers, including a number of interstate buyers.

“We experienced significant buyer demand from all buyer groups, including owner-occupiers, investors and developers however the owner occupier enquiry was significant,” he said.

“The property was purchased by a high net worth private who owns other industrial properties nearby.

“The buyer intends to further develop the property - in particular install drainage and bituminise the rear of the site measuring over 4,400sq m - and then potentially owner occupy.

“This competition resulted in a strong sales price exceeding expectations and while the vendor didn’t choose the highest price, it went with the cleanest offer.”

Knight Frank’s recently-released Australian Capital View found industrial property continued to be the best performing asset type in the commercial property market, driven by solid investor appetite.

Mr Thomson said:

“Buyer appetite for Perth industrial property remains very strong, essentially driven by supply and demand pressures.

“The owner occupier market is particularly strong regardless of the price point and type of industrial property.

“Some of the capitalisation rates on appraised market net returns we are experiencing are staggering.

“In recent months, Knight Frank’s Perth industrial team has transacted number of “off market” sales at
prices well above expectations.

“The industrial leasing market is healthy also due to the undersupply and demand pressures.

“Year to date, both sale prices and net rent rates have enjoyed solid growth across the entire Perth
industrial market.”

For more information contact: Geoff Thomson or Lachlan Lewis.