Industrial | $4,520,000 | 6.31 Net Yield | WA

Industrial Showroom Investment with attractive 6.31% Net Yield and Rental Upside (10-20%)

‍

This is a great showroom investment opportunity located in Joondalup (Edgewater). The premises offer double-sided entrances and convenient customer parking, spanning a total lettable area of 1,415 sqm, which includes a 201 sqm council-approved mezzanine.

‍

The property is leased to Kingdom Furniture, a leading furniture retailer in Western Australia, with a lease commencing in November 2024. The lease generates a net rental income of $285,384 per annum, plus outgoings and GST (including management fees), providing a strong net yield of 6.25%. The lease is set to run until November 2028, with a 5-year option extending to 2033, ensuring a stable income stream. The lease includes annual rent increases of 3%, as well as a market review at the option period. Additionally, the tenant is responsible for 100% of outgoings, including management fees, which further enhances net returns.

‍

Key Highlights

Double sided access and parking give flexibility to split into 2-4 units internally
Lease rate at $202/sqm (incl the approved mezzanine)
Current lease rate at $235/sqm excludes mezzanine > market evidence from $250/sqm+
low outgoings at $63/sqm (excl mng)
Surrounded by national retailers (Harvey Norman, Retra Vision, Nick Scali, Spotlight, Bunnings etc)
Tenant with strong presence online and on social media channels
Attractive starting net yield at 6.2% in high-demand asset class
100% of outgoings paid by the tenant, incl mng
Low vacancy rates
Built in 2003 > depreciation benefits evident

Purchase Details

Asking Price

Purchase Price

4520000

Deposit (assuming

% debt)

1582000

Stamp Duty

Nil

223895

Building Report*

3000