Centuria picks up Perth workshop for $23.8million

Savills Australia brokers deal for six-hectare property in Hazelmere industrial precinct

PERTH, December 21, 2018 – Centuria has secured a premium six-hectare property in the Hazelmere industrial precinct for $23.8million, highlighting renewed confidence in Perth’s industrial and mining services markets.

Savills Australia brokered the off-market deal for 103 Stirling Crescent and 155 Lakes Road, Hazelmere, after introducing Centuria to the vendor, a local private investor.

“Confidence is returning to the Perth industrial market across the board, and we believe we have now firmly entered recovery mode,” Industrial & Business Services director, Matthew Hopkins, said.

“Industrial sales of this scale have been limited in Perth during 2018 and securing quality assets of this size is difficult.”

The property was sold with a 1.6-year WALE based on two tenancies to mining services companies, NRW and Thiess. The sale price reflects an initial yield of 7.5 per cent.

“This type of facility is now in high demand, as we see the mining services sector making a comeback on the back of $30billion of capital spend committed across seven iron ore and liquefied natural gas projects, commencing in 2019,” Mr Hopkins said.

“The buyer was confident of the occupancy prospects despite the short WALE, as we are now seeing demand for this type of high-quality workshop facility outstrip supply for the first time since the downturn.

“Savills has also been seeing a substantially increased level of enquiry for workshop space in the past quarter, and demand across all sectors firming up.”

The property sits on two freehold titles and encompasses 9,973sqm of improvements. It has a low site cover of 17 per cent.

“The existing improvements offer high-quality workshop space with multiple gantry cranes, extensive hardstand areas and direct road-train access,” Mr Hopkins said.

“Situated in Hazelmere, the property is well located in Perth’s prime eastern industrial corridor, benefiting from fast access to the Roe Highway and wider major road network.”