Industrial Freehold | $5,400,000 | Net Yield: 6.10% | WA

This strategically positioned industrial freehold represents the calibre of secure, income-producing assets Rethink Investing continues to secure on behalf of clients seeking exposure to Perth's robust industrial sector.

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Positioned in Bassendean, just 8 kilometres from the Perth CBD and 6 kilometres from the airport, the property benefits from exceptional connectivity via major transport routes and sits at the heart of one of Western Australia's most tightly held industrial precincts. The location is strengthened by proximity to established, high-density residential suburbs that appeal to both tenants and owner-occupiers.

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The asset comprises a 4,135 square metre freehold corner site with 2,413 square metres of net lettable area. The property features three workshop bays, six gantry cranes (ranging from 5 to 10 tonnes), 400-amp power on site, a 94-kilowatt solar system, and recently refurbished office spaces. All spaces feature LED lighting, reflecting ongoing investment in facility standards.

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The property is secured to Pressform, an established metal fabrication and engineering business that has operated from this location since approximately 1993. Pressform specialises in precision metal engineering for loads up to 10 tonnes, servicing a strong and stable niche sector. The business delivers high-quality metal solutions including laser cutting, bending, welding, and machining, supported by advanced technologies.

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The lease-back arrangement features a new 5+3+3 year term providing long-term income security. The agreed net rent of $334,800 per annum plus outgoings translates to $139 per square metre—positioned at the lower end of market rates, providing scope for rental growth. Annual increases are set at 3% or CPI (whichever is lower), with market reviews at option periods.

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All outgoings, including management fees and land tax, are fully recoverable from the tenant. Annual outgoings total $57,900 at $24 per square metre, exceptionally tight for the sector. With a purchase rate of $2,238 per square metre (including land), the property represents excellent value. New industrial stock typically sells at $3,250 per square metre and above.

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Bassendean's industrial market generates approximately AUD 2.8 billion in output annually, with manufacturing representing 46% of activity. The market is characterised by consistently low vacancy rates, strong demand from logistics and e-commerce operators, and rising land values. Currently, only one other industrial property is available for lease in Bassendean, underpinning exceptional market fundamentals. Re-letting periods range from 2 to 4 months, reflecting robust tenant demand.

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Perth's population is forecast to grow by more than 60% between 2021 and 2046 at approximately 1.93% per annum. This densification will elevate demand for industrial and logistics assets supporting urban services and local supply chains. With prime industrial stock constrained, occupiers will increasingly target precincts like Bassendean for proximity to the CBD, major transport links, and ease of access.

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With a purchase price of $5,400,000 and total cash required of $2,276,818 (including 35% deposit and purchasing costs), the investment delivers a net annual cash flow return of $329,582 and a return on equity of 4.45% in pure cash flow terms. When accounting for conservative capital growth of 5%, 7% and 10%, the return on equity increases to 16.31%, 21.06% and 28.17% respectively.

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With secure lease-back income, exceptional market fundamentals, strategic location, and significant development upside as Perth's population grows and industrial land becomes scarce, this acquisition reflects the calibre of industrial assets that Rethink Investing continues to secure for clients.

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About Rethink Investing

• Australia & New Zealand's largest and most experienced commercial buyer's agency
• $7 billion+ in commercial property secured for clients
• Exclusive access to 70% off-market opportunities
• Specialists in high-yielding commercial property investments