Industrial site with development opportunities sold for premium price

A fully-leased warehouse building with future development opportunities has sold for $4.9 million in Osborne Park, with a 6.51 per cent yield.

Located at 33 Hector Street West, the 6883sqm site comprises a 4309sqm concrete building with nine separate units, each leased by small to medium commercial/industrial tenants.

The property was originally listed for auction in 2020, but the auction was cancelled due to the pandemic.

Ray White Commercial WA salesperson Brett Wilkins said the property was relisted for sale via expressions of interest in early 2021, with the property receiving multiple offers.

“With a lot of perseverance and planning with the vendor to achieve the desired sale, which became difficult with Covid, we finally reached a result everyone is happy with,” Mr Wilkins said.

The vendor was a private Perth family who developed the property in the 1970s.

The property was sold to a local investor.

“The property is a development site in the premier industrial location of Osborne Park including nine units built in 1977, with strong holding income,” Mr Wilkins said.

“The buyer is wanting to take advantage of future growth from Osborne Park rentals but also the development upside.”

Ray White Commercial WA salesperson Tom Jones said Osborne Park was a premier industrial location in Perth that was becoming increasingly gentrified.

“In what has for many years been a difficult leasing market in Osborne Park, there has been a noticeable shift in supply with an absorption of availability,” Mr Jones said.

“Therefore this multi tenant asset will be well positioned to reap the rewards of an improving landscape for years to come.

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