Industrial Asset | $3,500,000 | Net Yield: 5.50% | WA

This well-positioned industrial showroom asset presents a compelling opportunity to secure a nationally tenanted investment with strong income security and future upside potential.

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Leased to Total Tools, one of Australia’s leading professional tools retailers with over 120 locations nationwide, the property benefits from a proven national covenant and long-standing occupancy. The tenant has operated from the site for over a decade, reflecting the strength of the location and underlying business performance.

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The asset generates a net income of $192,342 p.a., representing a 5.50% net yield, with built-in annual rental increases of 4%, supporting consistent income growth. The lease runs through to 2029 with a further 7-year option, providing long-term income security.

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Constructed in 2010, the property features a modern concrete tilt-up showroom with excellent functionality and exposure. Situated on a substantial 6,188m² freehold site with low site coverage of approximately 19.5%, the asset offers significant value-add potential. Future development opportunities include the ability to construct additional showrooms, enhance the existing configuration, or unlock surplus land value over time.

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The current rental rate of $165/m² sits below market levels, with comparable evidence indicating achievable rents closer to $200/m². This presents a clear pathway for rental uplift, enhancing both income and asset value in the medium term.

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Strategically located within Bunbury, the economic hub of Western Australia’s south-west, the property benefits from strong regional fundamentals, including a diversified economy, major infrastructure investment, and proximity to the Port of Bunbury. The region continues to experience population growth and increasing demand for industrial and trade-based assets.

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Combining secure income, a national tenant, rental reversion potential, and development upside, this asset represents a well-balanced investment opportunity with both immediate cash flow and future growth prospects.