![]() Asset Class: | Industrial |
![]() Price: | $ 1375000 |
![]() Net Yield: | 5.70 % |
![]() Net Yield - including solar strategy: | % |
![]() Property Market Status: | On Market |
<b>Industrial Freehold in Strong Semi-Regional High-Growth Pocket</b><br><br>This prime industrial freehold property is strategically located in the heart of Davenport, Bunbury—approximately 180km south of Perth. The area is experiencing strong residential capital growth, driving increased demand for rental properties and upward pressure on lease rates - both residential and commercial.<br>The property is in sound condition, with no significant defects known to the agent. A minor pothole in the driveway has recently been repaired. The sellers, who have no connection to the tenant, are divesting due to their advanced age.<br><br>Situated on a 2,131sqm freehold landholding, the asset features a Net Lettable Area (NLA) of 706sqm, complemented by an additional 550sqm of laydown space. It is securely leased to Erinfair Pty Ltd (Bunbury Farmers Market), generating a net income of $79,755.60 per annum. The lease extends until January 2027, with CPI-linked annual increases and no further option. Importantly, the tenant is responsible for 100% of outgoings, ensuring a hassle-free, high-yield investment opportunity.<br><br><b>What We Like About This Asset</b><br><br>+ Industrial freehold sub $1.5M remains very high in demand, suggesting long-term yield compression<br>+ high rental demand market, experiencing high rental growth<br>+ Lease rate at $113/sqm sits at fair market but there is an additional hardstand area of approx 550m2 (general lease rate = $10/sqm)<br>+ building purchase rate only $1,912/sqm<br>+ site coverage only 33%
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<b>The Industrial Market</b><br><br>Davenport is a key industrial hub within the Bunbury region, supporting a diverse mix of businesses primarily focused on logistics, manufacturing, construction, and trade services. The area is home to transport and warehousing companies, engineering and fabrication workshops, automotive repair services, and suppliers catering to Bunbury’s expanding economy. Additionally, light and heavy industrial businesses, including machinery sales, agricultural support services, and bulk material storage, play a significant role in the local market. The presence of food processing and distribution businesses, such as Bunbury Farmers Market, further strengthens Davenport’s industrial profile.<br><br>Davenport features a well-established industrial precinct with a mix of large-format warehouses, hardstand storage, and mid-sized factory units. Development density remains moderate, with industrial sites typically ranging between 1,500sqm to 5,000sqm, offering flexibility for both owner-occupiers and investors. While the precinct is largely developed, ongoing demand for industrial space continues to drive new builds and expansions.<br><br><br><b>City of Bunbury</b><br><br>The City of Bunbury is located approximately 175 kilometres south of the Perth CBD. It is home to around 46,800 residents within the city limits, with an estimated further 50,000 in the greater Bunbury region and by 2041, the population is forecast to reach 150,000. The City encompasses 111 square kilometres, stretching from the Leschenault Estuary in the north to the Capel River channel in the south.<br><br>Considered the economic regional hub of the south-west, Bunbury hosts the Port of Bunbury, Western Australia's third largest port. This port is central to the city’s economy, facilitating the export of commodities such as alumina, mineral sands, and woodchips, and serving as a vital link in the supply chain for various industries. In addition to its economic significance, Bunbury is a prominent tourist destination, particularly in the summer months, attracting visitors from the Perth Metropolitan region.<br><br>Bunbury's economy is diversified across several sectors. The manufacturing industry is robust, with various factories and production facilities contributing to the local economy. Agriculture also plays a significant role, with the surrounding regions producing dairy, beef, horticultural products, and wine. Retail and service industries are well-developed, supporting the daily needs of the growing population and enhancing the city's commercial landscape.<br><br>The city is currently undergoing a host of infrastructure projects aimed at enhancing the region's development and connectivity. Notable projects include the Bunbury Outer Ring Road project, which will improve transport links and reduce congestion, and the transformation of the Bunbury waterfront, which is set to boost tourism and recreational opportunities. Additionally, investments in health and education infrastructure are supporting the growing community and attracting new residents and businesses to the area.<br><br>These developments, along with the city's strategic location and economic diversification, are driving Bunbury's growth, making it a vital and dynamic centre in Western Australia.<br><br><br><b>Port Master Plan Development</b><br><br>Southern Ports has developed a Port Master Plan (PMP 2022) for the Port of Bunbury. The Plan has assessed potential trade for a 30+ year planning period, considering current and future trade opportunities and how this could influence development within the Port.<br><br>This Port Master Plan (2022) has been developed considering the foundation analysis provided by Southern Ports Inner Harbour Structure Plan (IHSP 2009) and Revised Inner Harbour Structure Plan (RIHSP 2019) that provide aspirational port development planning context. Concept development items have been produced for short-, medium-and long-term horizons within the 30+ year planning timeframe.<br><br>For more detail, refer to the PDF under this link > <br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.southernports.com.au/sites/default/files/2023-08/Port%20of%20Bunbury%20-%20Port%20Master%20Plan%20-%20Rev%200_Final.pdf"><u>https://www.southernports.com.au/sites/default/files/2023-08/Port%20of%20Bunbury%20-%20Port%20Master%20Plan%20-%20Rev%200_Final.pdf</u></a><br>
Additional Location Information File<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Bunbury Farmers Market</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Bunbury Farmers Market is a fresh food market in Western Australia that offers high-quality, locally sourced produce. They specialize in farm-fresh fruits and vegetables, premium meats, dairy, baked goods, and gourmet products. The market focuses on providing fresh, seasonal, and locally grown ingredients, ensuring quality and sustainability. They also prepare ready-made meals using fresh ingredients, making it a go-to destination for both grocery shopping and convenient, healthy food options.</span><br><br><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://bunburyfarmersmarket.com.au/"><u>https://bunburyfarmersmarket.com.au/</u></a><br>
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<span style="color:rgb(0, 0, 0);background-color:transparent;">All outgoings are 100% recoverable, including management fees and land tax.</span>
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13 Gibbons Road, Davenport - 706m2 - $113/m2 33 McCombe Rd & 9 Clifford Street, Davenport - 948m2 - $181/m2 8 Mason Street, Davenport - 1,100m2 - $173/m2 8/11 Dryandra Court, Picton - 700m2 - $135/m2 U1 / 37 Albert St, East Bunbury - 734m2 - $120/m2
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<b>Purchase Price:</b> $1,3750,000 (subject to further negotiations, but agent will push to get this accepted).<br><br><span style="color:rgb(51, 51, 51);"><b>Market Status:</b></span><span style="color:rgb(51, 51, 51);"> On-Market</span><br><span style="color:rgb(51, 51, 51);"><b>Current Net Rent:</b></span><span style="color:rgb(51, 51, 51);"> $79,755.60pa + Outg + GST (incl mng)</span><br><b>Any Additional Areas:</b> Substantial laydown area 550m2 approx (excluded from NLA)<br><b>Current Net Yield:</b> 5.8% (incl mng)<br><b>NLA / Land: </b>706sqm / 2,131sqm (freehold)<br><b>Purchase Rate per sqm:</b> $1,983/sqm<br><b>Net Rent per sqm:</b> $113/sqm (excl hardstand - standard rate $10/sqm)<br><b>100% Outgoings Recoverable: </b>Yes<br><b>Outgoings (per sqm): </b>$19,260pa (excl mng) ($27/sqm)<br><b>Age of Asset:</b> approx. 26 years<br><b>Are Seller & Tenant Related: </b>No<br><b>Re-letting Period:</b> 3-5 months in the current market <br><b>Flood Zone:</b> No<br><b>Bushfire Zone: </b>No<br><b>Contamination</b>: No<br><br><b>Asset Composition: </b><br>- 2,131m2 Freehold<br>- Regular shaped lot<br>- Frontage of 35 metres<br>- Average depth of 60 metres approx<br>- Metal shed construction<br>- Ceiling steel truss > 5-6.5m clear height<br>- 706sqm of NLA<br>- 56sqm office + 650sqm warehouse<br>- Brick and colorbond office/reception facilities<br>- Double roller doors ranging in height from 5m – 6.5m approx.) allowing for easy vehicle access<br>- Externally the property features bitumen hardstand with drainage, parking and secure fencing<br>- Used as storage<br><br><b>Infrastructure Level: </b>Semi-Regional<br><br><b>Tenant Highlights:</b><br>- Tenant - Erinfair Pty Ltd (Bunbury Farmers Market)<br>- Lease Expiry Jan-2027 (no option)<br>- Annual CPI increases<br>- 100% of outgoings paid by tenant (incl mng)<br>- Security: $18,000 bond<br><br><b>Agent Questions:</b><br><br><b>How old is the building?</b> 1999 approx<br><b>Why is the owner selling? </b>Age, cashing out<br><b>Is the tenant related to the owner in any way? </b>No, current tenant occupied in 2022, prior to that a removal business occupied for over 20 years<br><b>Are mng and taxes recoverable?</b> Yes<br><b>Does the property need any maintenance work?</b> No, driveway pothole was recently fixed<br><b>Is the floor area 100% council approved?</b> Yes