 Asset Class: | Industrial |
 Price: | $ 1200000 |
 Net Yield: | 6.60 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<b>High-Yield Industrial Strata Investment Opportunity with Large Exclusive Land Component & Bonus Income</b><br><br>This on-market industrial investment opportunity is situated within a strata complex and offers exceptional value. The property includes a substantial, exclusive fenced land component of 1,451 sqm and delivers a strong net yield of 6.6% on the base rent, increasing to 7.8% with the addition of hardstand charges.<br><br>The tenant, Catmacs, has occupied the premises since December 1, 2022, operating as a distributor of Easylube automated oil and grease lubricators. The lease runs until November 30, 2027, with a 5+5 year option period. Under the lease terms, 100% of outgoings are recoverable.<br><br>The property comprises a 632 sqm warehouse, generating a net income of $79,632 per annum plus outgoings and GST (including management fees). At a lease rate of $126/sqm, it reflects fair market value for comparable properties in the area. Additionally, the hardstand area generates $15,000 per annum on a month-to-month basis, boosting the net yield to 7.8%—a compelling return for this investment.<br><br><b>What We Like About This Asset</b><br><br>- Replacement cost of the warehouse alone approx. $1.1M<br>- Exclusive use of hardstand area which earns extra income<br>- Attractive commencing net yield at 6.6%<br>- 7.8% net yield after bonus hardstand income<br><span style="color:rgb(51, 51, 51);">- attractive built-in growth @ greater of Market or 5% annual increases</span><br>- Complex built in 2008 > depreciation benefits evident<br>- Fully fenced, secure premises<br>- High tenant appeal<br>- Only 5km from Central Mandurah
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<b>The Industrial Market</b><br><br>Mandurah has a diverse industrial market encompassing various business types and industries. Key sectors include manufacturing, logistics, and construction. The area hosts manufacturing businesses, particularly in metal fabrication, food processing, and engineering. Logistics and warehousing also play a significant role due to Mandurah’s strategic location with access to road and rail networks. The construction sector is robust, driven by residential, commercial, and infrastructure projects. Additionally, there is a growing presence of agriculture-related industries, including aquaculture and horticulture, due to Mandurah's coastal location.<br><br><b>Lifestyle & Population</b><br><br>Mandurah has seen significant lifestyle changes and population growth over the past few years. Once a quiet fishing town, it has transformed into a bustling city with a vibrant community. This shift is largely driven by its attractive coastal location, improving infrastructure, and increasing appeal as a retirement and holiday destination.<br><br>In recent years, Mandurah has experienced a surge in population, with growth rates consistently above the national average. As of 2024, its population is approaching 100,000, reflecting a trend of people moving from Perth and other parts of Australia seeking a more relaxed lifestyle by the water. This growth has been fueled by affordable housing compared to Perth, beautiful natural surroundings, and a burgeoning local economy.<br>Lifestyle improvements in Mandurah include upgraded facilities, enhanced public transport, and a thriving local economy with more job opportunities. The city's waterfront development has become a key feature, offering picturesque views, recreational activities, and a range of dining and shopping options. Additionally, the local government has invested in community projects and infrastructure, further enhancing its appeal.<br><br>Looking ahead, Mandurah’s population is expected to continue growing, driven by both its attractiveness to retirees and the broader trend of decentralization from major cities. Projections suggest the population could reach around 120,000 by 2030. <br>
Additional Location Information File<b>Catmacs</b><br><br>Catmacs is your business partner to provide superior single point automated lubrication for fixed plant and equipment. Catmacs is the Master Distributor of Easylube® for Australia. We carry stock of devices and hardware to swiftly fulfill new and existing customer orders.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://catmacs.com/"><u>https://catmacs.com/</u></a><br>
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Security Info:
100% of outgoings, incl management and land tax, are recoverable from the tenant.<br><br><b>Outgoings:</b><br>Shire Rates are approx. $6665pa,<br>The Water rates are $300pa<br>Strata Levy is $4976/quarter = $19,904pa<br><b><u>Total = $26,869pa ($42.51/sqm)</u></b><br>
Additional Financial Information FileInitial Term:
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187/11 Watson Drive, Barragup – 632m2 - $126/m2 4A Hampton Street, Greenfields – 277m2 - $128/m2 1/59 Gordon Road, Greenfields – 204m2 - $132/m2 22 Panton Road, Greenfields – 350m2 - $257/m2
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<b>Purchase Price: </b>$1,200,000* <br>(this property has received a lot of inquiries and will likely receive offers at asking price over the next few days, consideration to increase the offer amount may be needed)<br><br><b>Initial Asking Price: </b>$1,200,000<br><b>Current Base Rent:</b> $79,632pa + Outg + GST (incl mng)<br><b>Additional Hardstand Rent:</b> $15,000pa (month-to-month basis)<br><b>Current Net Yield:</b> 6.6% (on based rent)<br><b>Current Net Yield:</b> 7.8% (incl hardstand)<br><b>NLA / Land: </b>632sqm / 1,451sqm (strata; exclusive fenced land)<br><b>Purchase Rate per sqm: </b>$1,899/sqm<br><b>Net Rent per sqm:</b> $126/sqm (incl mng)<br><b>100% Outgoings Recoverable: </b>Yes, incl mng and land tax<br><b>Age of Asset:</b> approx. 16 years<br><b>Any Incentives in the Lease: </b>None<br><b>Are Seller & Tenant Related: </b>No<br><span style="color:rgb(51, 51, 51);"><b>Security: </b></span><span style="color:rgb(51, 51, 51);">$20,000 Bank Guarantee + Personal Guarantees</span><br><b>Vacancy Status: </b>Tenanted – expect re-letting time of around 2-3 months in current market<br><b>Flood Zone:</b> No<br><b>Bushfire Zone: </b>Yes, overlap but no direct impact on insurance, finance or value of property<br><b>Contamination:</b> No<br><br><b>Asset Composition: </b><br>• Strata<br>• Concrete Tilt-Up construction<br>• 1,451sqm land<br>• 632sqm of NLA<br>• 819sqm of hardstand<br>• 5.5m to 6.7m truss height<br>• Curved metal roof<br>• Modern kitchen/lunchroom<br>• 3 x roller door access points and a direct access path to Watson drive<br><br><b>Infrastructure Level: </b>Semi-Regional<br><br><b>Key Highlights:</b><br>• Strata Complex with 1,451sqm of allocated land<br>• 632sqm of building area<br>• Approx 54sqm office + 30sqm mezzanine<br>• 735sqm of hardstand is leased on a monthly basis $1250pcm<br>• Built in 2008 > depreciation benefits evident<br>• Current net rent $79,632pa + Outg + GST (incl mng)<br>• Annual increase at 5%, review at option<br>• 100% of outgoings paid by tenant (incl mng)<br>• Tenant - Catmacs<br>• Security: $20,000 Bank Guarantee + Personal Guarantees
