 Asset Class: | Office |
 Price: | $ 1083000 |
 Net Yield: | 5.90 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<b>Sought-After Office-Warehouse with Excellent Parking Ratio in Central Location</b><br><br>This is a great opportunity to secure a leased 2-storey office-warehouse in a strata complex along with 6 exclusive bays, reflecting a high parking-ratio of 1 bay per 38sqm, making it an appealing rental for various types of businesses.<br><br>With a total building area of approx. 232sqm including a 50-sqm office mezzanine, the purchase rate sits at only $4,668/sqm, further supporting the strength of this deal.<br><br>The property has been leased in January 2023 with the term expiry in January 2026 +1+1 years (Jan 2028). The tenant - Smiths Detection - is a global leader in threat detection and security screening technologies, dedicated to safeguarding people and critical infrastructure worldwide. Their history spans over 70 years.<br><br>The property is conveniently located between the Perth CBD and Perth Airport, making it a very appealing rental for various tenants.<br><br><br><b>What We Like About This Asset</b><br><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Excellent central location between airport and CBD</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Built in 2005 > depreciation benefits evident</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Extensive office fitout transferred to buyer</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Strong tenant profile - 70 year history</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- 6 exclusive car bays currently not charged for (worth $150/bpm)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- High car bay ratio at 1 bay in 38sqm</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- 100% of outgoings recoverable</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Low outgoings rate at $67/sqm (excl mng fee)</span><br><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">- Strong projected population growth</span>
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?
<b>The Office Market</b><br><br>Rivervale has undergone significant transformation, evolving from a predominantly industrial area to a mixed-use community. Historically, it served as a working-class suburb supporting nearby factories and warehouses. In recent years, Rivervale has seen a surge in commercial and residential developments, particularly in the northern and eastern sections, indicating a shift towards contemporary homes and apartments. The suburb now hosts a variety of businesses, including retail outlets, food and beverage establishments, medical centers, and fitness facilities. <br><br>Regarding development density, Rivervale has experienced substantial growth, with new constructions and infrastructure enhancements. The "Mixed Use R100" zoning in areas like the Springs urban precinct permits building heights up to 27 meters or six storeys, facilitating higher-density developments.<br><br><b>Lifestyle & Population</b><br><br>Rivervale has experienced steady population growth over the past decade, driven by its strategic location just 5 kilometers from Perth’s CBD and ongoing urban development. Between 2011 and 2016, the population grew by 23.6%, reflecting an influx of young professionals and families attracted to the suburb’s modern housing options and lifestyle amenities. Recent transformations, particularly in the northern and eastern sections, have introduced contemporary apartment complexes and mixed-use developments, making Rivervale a more vibrant and urbanized community. <br><br>Looking ahead, Rivervale is expected to see continued growth, fueled by ongoing infrastructure projects and commercial investments. Property values have shown strong capital growth, with median house prices reaching $750,000 and rental yields remaining competitive. Future urban renewal initiatives, such as high-density residential projects and improved public amenities, are likely to attract even more residents. The suburb's evolution into a modern, high-density precinct suggests that it will continue to draw young professionals and families seeking convenience and connectivity. <br>
Additional Location Information File<b>Smiths Detection</b><br><br>Smiths Detection is a global leader in threat detection and security screening technologies, dedicated to safeguarding people and critical infrastructure worldwide. With a rich history spanning over 70 years, the company specializes in designing and manufacturing advanced solutions that detect and identify a wide range of threats, including explosives, weapons, chemical agents, biohazards, narcotics, and contraband.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.smithsdetection.com/"><u>https://www.smithsdetection.com/</u></a><span></span>
Initial Term:
Security:
Security Info:
Under the leases all outgoings are 100% recoverable, including management fees and land tax.
Additional Financial Information FileInitial Term:
Security:
Security Info:
Rental Comparisons 13/28 Belmont Avenue, Rivervale - 232m2 - $276/m2 130 Belmont Avenue, Rivervale - 195m2 - $282/m2 2/133 Burswood Ave, Rivervale - 342m2 - $280/m2 (upper floor) 117-123 Great Eastern Highway, Rivervale - 481m2 - $275/m2 1/25 Barker Street, Belmont - 370m2 - $310/m2 Sales Comparable 13/28 Belmont Avenue, Rivervale - 232m2 - $4,668/m2 9/44 Belmont Avenue, Rivervale - 163m2 - $4,994/m2 (upper floor) 1&3/107 Abernethy Road, Belmont - 331m2 - $5,287/m2 1/25 Barker Street, Belmont - 370m2 - $5,426/m2 2/8 Riversdale Road, Burswood - 126m2 - $5,020/m2 (ground floor)
Offer To Purchase:
$
Initial Deposit:
$
Due Diligence:
days
Finance:
days
Settlement:
days
<b>Purchase Price:</b> $1,083,000<br>(the property is for sale via EOI, ending 26-February,, but the seller would accept this offer prior)<br><br><br><b>Current Net Rent: </b>$63,945pa + Outg + GST (incl mng) <br><b>Exclusive Car Bays (Ratio)</b>: 6 car bays (1 bay in 39sqm)<br><b>Current Net Yield:</b> 5.9% (incl mng)<br><b>NLA / Land:</b> 232sqm (strata)<br><b>Purchase Rate per sqm:</b> $4,668/sqm<br><b>Net Rent per sqm:</b> $276/sqm (excl mng)<br><b>100% Outgoings Recoverable:</b> Yes, incl mng fee<br><b>Outgoings (per sqm): </b>$18,560pa (excl mng) ($67/sqm)<br><b>Age of Asset:</b> 2005<br><b>Are Seller & Tenant Related:</b> No<br><b>Re-letting Period:</b> 2-4 months in the current market (high tenant appeal due to modern fitout, high car bay ratio and convenient location)<br><b>Flood Zone:</b> No<br><b>Bushfire Zone:</b> No<br><b>Contamination:</b> No<br><br><b>Asset Composition:</b> <br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Strata</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">232sqm of NLA</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">128sqm two level office + 104sqm high truss warehouse (concrete tilt-up)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">6 car bays</span></p></li></ul><br><b>Infrastructure Level: </b>Tier 1 <br><br><b>Key Highlights:</b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Strata</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">232sqm of building area</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">128sqm office + 104sqm concrete tilt-up warehouse</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Built in 2005 > depreciation benefits evident</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Purchase Price $1,083,000</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Current net rent $63,945pa + Outg + GST (incl mng) </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Net Yield 5.9%</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Lease Expiry Jan-2026 + 2x 1-year (2028)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Fixed Annual increase at 3%, market review at option (2026 & 2027)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">100% of outgoings paid by tenant (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenant - Smiths Detection (Australia) Pty Ltd</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located 5km West of the Perth Airport </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located 5km East of the Perth CBD</span></p></li></ul><br><b>Agent Questions:</b><br><br><b>Who does the fitout belong to?</b> The office fit out forms part of the property. It was leased as is. Furniture etc is the Lessee’s<br><b>Why is the owner selling? </b>No particular reason. Property was built in 2005, they have owned it since 2008. So probably just time to reinvest into something else.<br><b>Is the tenant related to the owner in any way? </b>No<br><b>Does the property need any maintenance work?</b> Not aware of any<br><b>Is the floor area 100% council approved?</b> The mezz was constructed as part of the original build. You can see the 64sqm first floor on the strata plan. We don’t have the original plans but these could be obtained from council, however this will delay matters<br>
