Industrial Investment | $2,900,000 | Net Yield: 5.59% | WA

59 Barberry Way, Bibra Lake presents an outstanding opportunity to secure a 3,067 square metre freehold industrial site with an exceptionally low site coverage of just 21%, providing significant future upside and flexibility for the discerning investor. This on-market acquisition reflects the calibre of secure, development-backed industrial assets Rethink Investing continues to identify for clients across Perth's established industrial precincts.

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The property generates a passing net income of $162,000 per annum plus outgoings, secured by long-standing tenant Airpac Rentals, an international equipment rental specialist backed by UK-listed Vp plc, which has occupied the site since 2013. The current lease runs to November 2028, with a further option term to be negotiated once under contract, creating a clear pathway for owner-occupation, redevelopment or value-add expansion. The tenant pays 100% of outgoings under a triple net lease structure, including management fees and land tax, with lease security supported by a $17,773 bond and fixed 3.5% annual rent increases.

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The existing front warehouse comprises 652 square metres of net lettable area, positioned efficiently toward the front of the site and leaving approximately 1,650 square metres of substantial hardstand and yard space. This configuration allows for the addition of a second warehouse at the rear of approximately 1,000 square metres while retaining the current improvements. Based on an estimated future rental rate of $180 per square metre net by 2028, the additional building could generate approximately $180,000 per annum in additional net income, taking total net rent to approximately $298,000 plus outgoings and GST by 2028.

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Bibra Lake is one of Perth's most established industrial precincts, strategically positioned between North Lake Road, Spearwood Avenue and the Kwinana Freeway, delivering excellent connectivity to Fremantle Port, Cockburn Central and the wider southern corridor. The suburb benefits from a large surrounding residential catchment across Cockburn, Spearwood, Yangebup and Success, with continued population growth forecast through to 2041, underpinned by major projects including the $1 billion Cockburn Quarter redevelopment.

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With a purchase price of $2,900,000 and total cash required of $1,224,065.50 (including a 35% deposit and purchasing costs), the investment delivers a net annual cash flow return of $162,000, a net yield of 5.59%, and a net yield of 5.21% accounting for purchasing costs. Against a cost of loan of $122,525, the cash flow after mortgage costs sits at $39,475, translating to a return on equity of 3.22% in pure cash flow terms. Accounting for conservative capital growth of 5%, 7% and 10%, the return on equity increases to 15.07%, 19.81% and 26.92% respectively. The underlying land value is estimated at $2.3 million, or $750 per square metre, providing meaningful downside protection independent of the improvements.

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With a triple net lease structure, an internationally backed tenant covenant, embedded rental growth, and clearly identifiable development upside within a tightly held Perth industrial precinct, this acquisition reflects the calibre of industrial assets that Rethink Investing continues to secure for clients.

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