 Asset Class: | Industrial |
 Price: | $ 1180000 |
 Net Yield: | 8.90 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<p class="mb-4"><strong>Regional Industrial Opportunity with National Tenant, Commencing at 8.9%, set to increase to 9.9% from 1-July 2025</strong></p><p class="mb-4"></p><p class="mb-4">This is a great opportunity to secure an industrial facility with an established tenant and strong returns. This property features a substantial 875sqm lettable area on a generous 2,003sqm corner site in the heart of Kalgoorlie's Mixed Use zone.</p><p class="mb-4">Currently leased to JTMEC Pty Ltd, a division of mining and industrial equipment specialist Epiroc, this property delivers immediate financial stability with a recently executed lease extension. The tenant has exercised their option to renew for a further two years, with rent increasing from the current $105,000 per annum plus outgoings and GST to $117,000 per annum plus outgoings and GST from 1 July 2025.</p><p class="mb-4">Comparable industrial properties have been leasing on average within 2-3 months over the past year. This property presents well with a refurnished office building and is conveniently located close to the town center, making it appealing for a wider range of potential future tenants.</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">Purchase price well below replacement value</p></li><li><p class="mb-4">very attractive commencing yield at 8.9%, set to increase to 9.9% from 1-July at a fair market rate (based on valuation)</p></li><li><p class="mb-4">JTMEC is a National tenant with 6 locations Australia wide (founded in Kalgoorlie) and operating from this location since 2021</p></li><li><p class="mb-4">tenant exercised 2-year option with new lease expiry in June 2027</p></li><li><p class="mb-4">convenient location, close to town center</p></li><li><p class="mb-4">3-sided street access with good street appeal</p></li><li><p class="mb-4">refurbished admin building</p><p class="mb-4"></p></li></ul>
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"><strong>The Industrial Market</strong></p><p class="mb-4">The region’s economy is largely fueled by the mining sector, with numerous companies engaged in resource extraction, mining services, and equipment supply. Businesses in Kalgoorlie also cater to heavy industries such as construction, manufacturing, transport, and logistics, providing essential services and products. Additionally, the agricultural and wholesale trade sectors contribute to the industrial landscape, with businesses involved in food distribution, storage, and processing.</p><p class="mb-4">In terms of development density, Kalgoorlie maintains a relatively low-to-moderate industrial development footprint. The industrial precincts are primarily concentrated around the central business district and major transport routes, offering easy access to both domestic and international markets. </p><p class="mb-4"></p><p class="mb-4"><strong>History & Economy</strong></p><p class="mb-4">Kalgoorlie, nestled in Western Australia's Goldfields region, is a town where rich history meets modern development. Founded during the 1890s gold rush, the city boasts character-filled heritage buildings, especially along Hannan Street, reflecting its storied past.</p><p class="mb-4">As of June 2023, Kalgoorlie-Boulder's estimated population stands at approximately 40,955 residents . While the city has faced population fluctuations over the years, efforts are underway to stimulate growth and development.</p><p class="mb-4">Significant government investments are revitalizing the city. A notable project is the $30 million development of the Yilkari Industrial Estate, anticipated to create over 850 permanent jobs and inject more than $300 million annually into the local economy . Additionally, nearly $600,000 has been allocated for new walking and cycling paths, enhancing connectivity and promoting active lifestyles</p><p class="mb-4"><br></p>
Additional Location Information File<p class="mb-4"><strong>JTMEC</strong></p><p class="mb-4"></p><p class="mb-4">JTMEC is a leading Australian electrical contracting company that provides comprehensive electrical services and products, particularly for the mining and infrastructure sectors. Established in 2005 in Kalgoorlie, Western Australia, JTMEC has grown to operate across Australia and internationally. In June 2022, it was acquired by Epiroc, a global partner in mining and infrastructure productivity and sustainability.</p><p class="mb-4"></p><p class="mb-4"><u>https://jtmec.com.au/</u></p><p class="mb-4"><br></p>
Initial Term:
Security:
Security Info:
<p class="mb-4">This investment presents an <strong>attractive 9.9% return</strong> based on the upcoming rental increase. The property is currently generating <strong>$105,000 per annum plus outgoings and GST</strong>, with rent set to increase to <strong>$117,000 per annum plus outgoings and GST</strong> from 1 July 2025.</p><p class="mb-4">The lease structure provides for <strong>100% recoverable outgoings</strong>, including management fees, creating a genuinely net income for the landlord. Current lease rates equate to <strong>$120/sqm</strong>, increasing to <strong>$134/sqm</strong> from July 2025.</p><p class="mb-4"></p><p class="mb-4">Outgoings:</p><p class="mb-4">Council Rates -$11,756.63</p><p class="mb-4">Water Rates - $298.50</p><p class="mb-4">Insurance – 3,804.27</p><p class="mb-4"></p><p class="mb-4">A <strong>price of $1,180,000</strong> has been negotiated. With the recent lease extension executed in February 2025, the tenant has exercised their option for a further two-year term from July 2025 to June 2027, with an additional two-year option available beyond that (July 2027 to June 2029) upon mutual agreement.</p><p class="mb-4">Annual outgoings are approximately <strong>$15,859 ($18/sqm)</strong>, all recoverable from the tenant, creating a clean investment structure with minimal financial surprises.</p>
Additional Financial Information FileInitial Term:
Security:
Security Info:
<p class="mb-4"><strong>Rental Comparable</strong></p><p class="mb-4"> </p><p class="mb-4"><strong>214 Dugan Street, Kalgoorlie - 874m2 - $120/m2</strong></p><p class="mb-4">2/25 Kakarra Road, West Kalgoorlie - 966m2 - $189/m2 (similar)</p><p class="mb-4">4 Cunningham Drive, West Kalgoorlie - 688m2 - $218/m2 (similar)</p><p class="mb-4">8 Percy Road, Broadwood - 845m2 - $178/m2 (similar)</p><p class="mb-4">21 Broadwood Street, Broadwood - 870m2 - $234/m2 (superior with gantry crane)</p><p class="mb-4"> </p><p class="mb-4"><strong>Sales Comparable</strong></p><p class="mb-4"> </p><p class="mb-4"><strong>214 Dugan Street, Kalgoorlie - 874m2 - $1,349/m2 - 2,003m2 freehold (44% site coverage)</strong></p><p class="mb-4">2 Coventry Street, Kalgoorlie - 630m2 - $1,349/m2 - 2,044m2 freehold (31% site coverage)</p><p class="mb-4">143 Boulder Road, Kalgoorlie - 930m2 - $1,478/m2 - 2,159m2 freehold (43% site coverage, next to Bunnings)</p><p class="mb-4">16 Cunningham Drive, West Kalgoorlie - 630m2 - $1,746/m2 - 2,300m2 freehold (27% site coverage)</p><p class="mb-4">10-12 Nambi Way, Klagoorlie - 1,088m2 - $3,842/m2 - 7,541m2 freehold (14% site coverage)</p>
Offer To Purchase:
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Initial Deposit:
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Due Diligence:
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Finance:
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Settlement:
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<p class="mb-4"><strong>Purchase Price: </strong>$1,180,000 (negotiated)<br></p><p class="mb-4"><strong>Market Status:</strong> On-Market</p><p class="mb-4"><strong>Current Net Rent:</strong> $105,000pa + Outg + GST (incl mng) > increasing to $117,000pa + Outg + GST from 1-July 2025</p><p class="mb-4"><strong>Current Net Yield:</strong> 8.9% (incl mng) > 9.9% from 1-July</p><p class="mb-4"><strong>Increases:</strong> to be negotiated </p><p class="mb-4"><strong>Purchase Rate per sqm</strong>: $1,349/sqm</p><p class="mb-4"><strong>Net Rent per sqm:</strong> $120/sqm > $134/sqm from 1-July (market valuation)</p><p class="mb-4"><strong>100% Outgoings Recoverable:</strong> Yes including mng fee</p><p class="mb-4"><strong>Outgoings (per sqm):</strong> $15,860pa (excl mng) ($18/sqm)</p><p class="mb-4"><strong>Age of Asset:</strong> 1980</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> expect 3-5 months; comparable properties have been leasing within 2-3 months on average over the past year</p><p class="mb-4"><strong>Flood Zone:</strong> No</p><p class="mb-4"><strong>Bushfire Zone:</strong> No</p><p class="mb-4"><strong>Contamination:</strong> No<br></p><p class="mb-4"><strong>Asset Composition: </strong></p><ul class="bullet-list"><li><p class="mb-4">2,003sqm Freehold</p></li><li><p class="mb-4">Metal Shed Construction</p></li><li><p class="mb-4">875sqm of total NLA</p></li><li><p class="mb-4">200sqm refurbished office/amenities</p></li><li><p class="mb-4">435sqm primary workshop</p></li><li><p class="mb-4">200sqm secondary workshop (includes further amenities)</p></li><li><p class="mb-4">40sqm crib room/amenities (annexed to secondary workshop)</p></li><li><p class="mb-4">Sealed yard</p></li><li><p class="mb-4">Refurbished front building incl Reception, WC, Kitchenette and lunch room</p></li></ul><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><ul class="bullet-list"><li><p class="mb-4">Tenant - JTMEC Pty Ltd</p></li><li><p class="mb-4">Lease Expiry June-2027 + 2-years (2029)</p></li><li><p class="mb-4">Tenant’s option has been exercised with an agreed rent of $117,000.00 p.a + GST ($9,750.00 p.c.m + GST) set to commence 1 July 2025 (this increase is based on a valuation)</p></li><li><p class="mb-4">There is no rent review set for 1/7/26 in the Option term.</p></li><li><p class="mb-4">The terms of the Further Option term have not been set and would require mutual agreement at such time.</p></li><li><p class="mb-4">100% of outgoings paid by tenant (incl mng & land tax)</p></li><li><p class="mb-4">No security - this can be negotiated once the property is under contract, but tenant is not required according to lease</p></li></ul><p class="mb-4"></p><p class="mb-4"><strong>Agent Questions:</strong></p><p class="mb-4"></p><p class="mb-4"><strong>Who does the fitout belong to? </strong>The Lease mentions the following Chattels. Power, light fittings, hand basin and tap.</p><p class="mb-4">If you have any specific queries I can ask the owner to elaborate.<strong> </strong></p><p class="mb-4"><strong>Are there any incentives in the lease?</strong> Nil incentive.<strong> </strong></p><p class="mb-4"><strong>Why is the owner selling? </strong>The owner has not advised the reason for selling.</p><p class="mb-4"><strong>Has the tenant been paying rent on time? </strong>We have been provided a payment ledger (attached) which was sourced from the tenant. It appears the tenant is paying in arrears with payment for the previous month being paid predominantly on the 1st, 2nd or 3rd. The Lease requires payment in advance however we understand the owner has found the current situation acceptable and has not sought to enforce this.<strong> </strong></p><p class="mb-4"><strong>Do you currently manage this? </strong>No. The property is currently self managed.</p><p class="mb-4"><strong>Are you aware of any significant defects that may come up in the building inspection? </strong>We are not aware of any significant defects.</p><p class="mb-4"><strong>Is the floor area 100% council approved? </strong>We are not aware of any unapproved structures however we have not sighted any approved plans.</p>
