 Asset Class: | Industrial |
 Price: | $ 705000 |
 Net Yield: | 5.73 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<p class="mb-4">Presenting an outstanding off-market industrial investment opportunity in the thriving coastal city of Mandurah. Unit 1/66 Reserve Drive features a modern tilt-panel warehouse with showroom space, currently leased to Signarama – a globally recognised signage and graphics company with over 700 locations worldwide.</p><p class="mb-4"></p><p class="mb-4">This rare investment offers exceptional security with a long-standing tenant who has occupied the premises for 15+ years. The current lease runs until November 2026 with a further 3-year option extending to 2029, providing investors with steady income security. Signarama pays 100% of outgoings including management fees, and the lease includes fixed 3% annual increases – delivering reliable rental growth year after year.</p><p class="mb-4">Situated on a 420sqm land parcel with 278sqm of net lettable area, this strata-titled unit represents approximately 37.15% of the total strata area across two units. The property features a prominent street-facing position, high-clearance roller door at the rear, and ample on-site customer parking.</p><p class="mb-4"></p><p class="mb-4">Currently generating a net rental income of $40,392 p.a. + GST with a current net yield of 5.73%, this opportunity presents strong value at a purchase price of $705,000 (subject to formal offer). With a purchase rate per square metre of just $2,527, this asset represents solid market value in a tightly held location.</p><p class="mb-4"></p><p class="mb-4">Mandurah has experienced significant growth in recent years, transforming from a quiet fishing town to a bustling city with a population approaching 100,000. The area continues to attract residents from Perth and beyond seeking a coastal lifestyle with affordability advantages. This population growth underpins increasing demand for commercial and industrial properties in the region.</p><p class="mb-4">This investment opportunity combines the security of a national tenant, strong income return, and future growth potential in one of Western Australia's most dynamic regional cities.</p><p class="mb-4"></p><p class="mb-4"><strong>What We Like About This Asset</strong></p><p class="mb-4"></p><ul class="bullet-list"><li><p class="mb-4">Duplex warehouse with 45% unit entitlement</p></li><li><p class="mb-4">no strata fees</p></li><li><p class="mb-4">100% outgoings recoverable</p></li><li><p class="mb-4">1,500sqm shared landholding between 2 units</p></li><li><p class="mb-4">showroom setup leased at $144/sqm > potential to enclose showroom with ceiling and charge higher lease rate at $200/sqm+</p></li><li><p class="mb-4">shopfront with high fascia for signage (showroom setup)</p></li><li><p class="mb-4">high rollergate at rear of warehouse</p></li><li><p class="mb-4">easy access & ample customer parking</p></li><li><p class="mb-4">Global tenant with 100 stores Australia-wide</p></li><li><p class="mb-4">well-presented building</p></li></ul><p class="mb-4"></p>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<p class="mb-4">Mandurah has evolved significantly over recent decades, transforming from a quiet fishing town into a vibrant coastal city with a population approaching 100,000 residents. Located approximately 70km south of Perth, it has become a popular destination for those seeking a coastal lifestyle without the premium prices of the capital city.</p><p class="mb-4">The region features a diverse industrial market with key sectors including manufacturing, logistics, and construction. The area's strategic position provides excellent access to regional road networks, supporting its growing industrial base. Additionally, the construction sector remains robust, driven by ongoing residential, commercial, and infrastructure development.</p><p class="mb-4">Mandurah's population growth has consistently exceeded the national average, fueled by its attractive coastal location, improving infrastructure, and increasing appeal as both a retirement and holiday destination. Projections suggest continued strong growth with the population potentially reaching 120,000 by 2036.</p><p class="mb-4">This demographic expansion has created a flourishing local economy with increasing employment opportunities, further supporting demand for industrial and commercial properties in the region.</p>
Additional Location Information File<p class="mb-4"><strong>Signarama</strong> occupies the property as a franchised business operation. Established in 1986 in Farmingdale, New York, Signarama has grown into a global leader in the signage and graphics industry with over 700 locations across more than 35 countries worldwide.</p><p class="mb-4">The tenant has demonstrated exceptional stability, with the business operating from this location for over 15 years. The current franchisee took over the existing business in 2019 and has maintained consistent operations.</p><p class="mb-4">Their current lease runs until November 2026 with a 3-year option extending to 2029. The lease includes several investor-friendly provisions:</p><ul class="bullet-list"><li><p class="mb-4">Fixed 3% annual increases</p></li><li><p class="mb-4">100% outgoings recovery including management fees</p></li><li><p class="mb-4">Security deposit of 3 months' rent ($12,348)</p></li></ul><p class="mb-4">The tenant has maintained an excellent payment history with no reports of late payments. Their long-term occupancy and recent franchise renewal demonstrate a clear commitment to the location, providing investors with strong income security.</p>
Initial Term:
Security:
Security Info:
<p>This investment offers a <strong>solid financial foundation</strong> with current net rent of $40,392 p.a. + GST, translating to a net yield of <strong>5.73%</strong> at the asking price of $705,000.</p> <p>The property benefits from <strong>100% outgoings recovery</strong>, including management fees and land tax, delivering true net income to the investor. The 2024-25 outgoings total approximately $8,816 annually, covering:</p> <ul> <li>Water usage: $1,630.23</li> <li>Strata water usage: $829.76</li> <li>Garden maintenance: $449.92</li> <li>Property maintenance: $537.37</li> <li>Council rates: $3,402.06</li> <li>Insurance: $1,966.95</li> </ul> <p>The lease structure includes <strong>fixed 3% annual increases</strong>, ensuring income growth outpaces inflation. The current rate of $144/sqm represents good value compared to similar properties in the area, suggesting potential for rental growth at lease renewal.</p> <p>With settlement terms of 21 days and finance approval period of 28 days, this investment offers a <strong>streamlined acquisition process</strong> for qualified investors.</p>
Additional Financial Information FileInitial Term:
Security:
Security Info:
<p class="mb-4"><strong>Rental Comparable</strong></p><p class="mb-4"><strong> </strong></p><p class="mb-4"><strong>1/66 Reserve Drive, Mandurah - 279m2 - $144/m2 (shopfront warehouse)</strong></p><p class="mb-4">4/41 Gordon Road, Greenfields - 122m2 - $155/m2</p><p class="mb-4">22 Panton Road, Greenfields - 350m2 - $257/m2</p><p class="mb-4">3/73-77 Reserve Drive, Mandurah - 106m2 - $208/m2 (asking rent - cold shell)</p><p class="mb-4">65 Reserve Dr, Mandurah - 500m2 - $170/m2 (warehouse/ showroom cold shell)</p><p class="mb-4">1/17 Gordon Rd, Mandurah - 351m2 - $269/m2 (paint shop)</p><p class="mb-4">1/88 Pinjarra Rd, Mandurah - 243m2 - $170/m2 (low ceiling retail)</p><p class="mb-4">8 Dower Street, Mandurah - 468m2 - $160/m2 (showroom/warehouse)</p><p class="mb-4"> </p><p class="mb-4"><strong>Sales Comparable</strong></p><p class="mb-4"><strong> </strong></p><p class="mb-4"><strong>1/66 Reserve Drive, Mandurah - 279m2 - $2,509/m2</strong></p><p class="mb-4">37A Panton Road, Greenfields - 104m2 - $2,596/m2</p><p class="mb-4">4/39 Gordon Rd, Mandurah - 241m2 - $3,029/m2 (lower ceiling retail)</p>
Offer To Purchase:
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Initial Deposit:
$
Due Diligence:
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Finance:
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Settlement:
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<p class="mb-4"><strong>Purchase Price: </strong>$705,000 (subject to presenting a formal offer, final call is with the sellers)<br></p><p class="mb-4"><strong>Initial Asking Price: </strong>from $720,000</p><p class="mb-4"><strong>Market Status:</strong> Off-Market</p><p class="mb-4"><strong>Current Net Rent:</strong> $40,392pa + Outg + GST (incl mng)</p><p class="mb-4"><strong>Current Net Yield:</strong> 5.73% (incl mng)</p><p class="mb-4"><strong>NLA / Land:</strong> 279sqm / 420sqm (strata)</p><p class="mb-4"><strong>Purchase Rate per sqm</strong>: $2,527/sqm</p><p class="mb-4"><strong>Net Rent per sqm:</strong> $144/sqm (excl mng)</p><p class="mb-4"><strong>100% Outgoings Recoverable:</strong> Yes, incl mng</p><p class="mb-4"><strong>Outgoings (per sqm):</strong> $8,816pa (excl mng) ($31/sqm)</p><p class="mb-4"><strong>Age of Asset:</strong> 2003</p><p class="mb-4"><strong>Any Incentives in the Lease:</strong> None</p><p class="mb-4"><strong>Are Seller & Tenant Related:</strong> No</p><p class="mb-4"><strong>Re-letting Period:</strong> 2-4 months in the current market</p><p class="mb-4"><strong>Flood Zone:</strong> No</p><p class="mb-4"><strong>Bushfire Zone:</strong> Yes, overlap for about 60% but no direct impact on insurance, finance or value of property</p><p class="mb-4"><strong>Contamination:</strong> No</p><p class="mb-4"> </p><p class="mb-4"><strong>Asset Composition:</strong></p><p class="mb-4">● 2-lot survey strata</p><p class="mb-4">● Concrete Tilt-Up construction</p><p class="mb-4">● 420sqm land</p><p class="mb-4">● 279sqm of NLA</p><p class="mb-4">● Warehouse</p><p class="mb-4">● 4 car bays</p><p class="mb-4"> </p><p class="mb-4"><strong>Infrastructure Level:</strong> Regional</p><p class="mb-4"> </p><p class="mb-4"><strong>Tenant Highlights:</strong></p><p class="mb-4">● Tenant - Signarama</p><p class="mb-4">● Lease Expiry Nov-2026 + 3-years (2029)</p><p class="mb-4">● Fixed 3% annual increases</p><p class="mb-4">● 100% of outgoings paid by tenant (incl mng)</p><p class="mb-4">● Security: TBA</p><p class="mb-4"> </p><p class="mb-4"><strong>Agent Questions:</strong></p><p class="mb-4"> </p><p class="mb-4"><strong>Are there any incentives in the lease? </strong>No remaining incentives on the lease</p><p class="mb-4"><strong>Do you have more current pictures, especially the inside?</strong> I do not, nor does the owner. I have an inspection there next week and will take some photos for you then</p><p class="mb-4"><strong>How long has the tenant been operating in this property? </strong>Signarama is a franchised business, the business has been there for 15+ years. The previous tenant retired and was taken over by another individual who took over the same business in 2019 I believe</p><p class="mb-4"><strong>Why is the owner selling? </strong>Divorce – owned in divorcees SMSF</p><p class="mb-4"><strong>Is the tenant related to the owner in any way? </strong>No</p><p class="mb-4"><strong>Has the tenant been paying rent on time? </strong>Yes</p><p class="mb-4"><strong>Are all outgoings, incl management, recoverable? </strong>Yes they are. The owner currently self manages, however we are happy to retain management and pass expenses onto the tenant.</p><p class="mb-4"><strong>What’s the lease security?</strong> I have emailed owner and will get back to you on this.</p><p class="mb-4"><strong>Are you aware of any significant defects that may come up in the building inspection? </strong>No</p>
