Rare pharmaceutical manufacturing facility trades for $21.5 million in Balcatta

A highly specialised pharmaceutical manufacturing facility in Balcatta has been successfully sold for $21.5 million, underscoring strong investor appetite for rare, healthcare-linked industrial assets in Western Australia.

The transaction was managed by Franz Stapelberg and Nicolas Milner of RWC Medical, in conjunction with Tom Jones of RWC WA, on behalf of Orion Laboratories, with the asset acquired by AGEM Property Group following a competitive Expressions of Interest campaign.

The property is regarded as one of Perth’s largest and most sought-after pharmaceutical manufacturing facilities, located within the tightly held Balcatta industrial precinct, approximately 10 kilometres north of the Perth CBD. The 8,594sqm freehold site is fully leased to a well-established pharmaceutical operator with a 40-year operating history and benefits from TGA and GMP approvals, making it one of only a handful of such facilities nationally.

According to RWC Medical’s Franz Stapelberg, the sale represented a rare opportunity for the broader investment market.

“Facilities of this nature rarely come to the open market,” Mr Stapelberg said. “More often, assets with genuine pharmaceutical manufacturing credentials transact quietly off-market between sophisticated capital groups and industry players. Bringing this one to an open EOI process was a standout opportunity for the market.”

The campaign generated 227 qualified enquiries, which translated into 13 inspections and ultimately 11 formal offers, highlighting the depth of demand for specialised industrial assets with strong tenant covenants.

RWC Medical’s Nicolas Milner said the campaign also served an important educational role for buyers.

“This campaign presented a fantastic opportunity to educate the market on an asset type that is seldom seen in an open process,” Mr Milner said. “For many buyers, it was the first time they’d had the chance to assess a purpose-built pharmaceutical facility of this calibre.”

“The competitiveness we achieved was cultivated by the 13 parties who inspected the property and fully understood the depth of what was being offered in the transaction, ultimately creating genuine competitive tension and a clean outcome.”

Mr Milner added that assets of this nature offer compelling diversification benefits.

“Specialised healthcare-industrial assets like this can provide investors with meaningful portfolio diversification, offering a blend of industrial fundamentals and the resilience of healthcare-linked demand.”

Tom Jones of RWC WA said the breadth of buyer interest was a standout feature of the campaign.

“We saw interest from local, national and international capital, ranging from private investors through to fund management groups and family offices,” Mr Jones said. “That breadth is a clear testament to demand for high-quality, specialised investments that are difficult to replicate, particularly in land-constrained industrial markets like Balcatta.”

AGEM senior asset manager Ben Graham, who led the acquisition team, said the strength of the buyer–agent–seller relationship was an important factor in navigating the transaction.

“As with any acquisition, clear communication is critical. While negotiations like these inevitably involve complexities, everyone involved appreciated this was the start of longer-term relationships. That helped deliver the outcomes we were all looking for. The vendor / tenant’s long-term commitment to the site was a key consideration and we saw clear value in that,” Ben Graham said.

RWC acknowledged both parties for their professionalism throughout the transaction.

“We’d like to thank the vendor for trusting RWC Medical with this transaction, and congratulate AGEM Property Group on the acquisition,” Mr Stapelberg said. “They were excellent to deal with throughout the process.”

The sale further reinforces Balcatta’s position as one of Perth’s most tightly held and strategically important industrial precincts, particularly for advanced manufacturing and healthcare-related uses.