 Asset Class: | Industrial |
 Price: | $ 1970000 |
 Net Yield: | 5.57 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<b>Industrial Investment in a Prime Location with Multiple Value-Add Opportunities</b><br><br>This is a rare opportunity to acquire 828sqm of warehouse space in the most sought-after industrial precinct of WA, consisting of two separate units currently held under a single title.<br><br>These units are part of an 8-unit complex of equal size, situated on a substantial 5,738sqm landholding. Ownership of this property is expected to provide a 25% share of the overall landholding, subject to confirmation.<br><br>Currently leased at a blended rate of $133/sqm, the WALE is under one year across both tenants. Based on rental comparables, the fair market rate for this type of asset in the area is estimated between $140-$160/sqm. Unit 5 is leased to a party hire business, while Unit 6 has recently been leased by the owner to a car rental and wholesale business on a 1+1 basis.<br><br>A previous offer of $2.03M was accepted, contingent on the strata titling of the two units within three months. However, due to delays in the process, the deal recently fell through.<br><br><b>What We Like About This Asset</b><br><br>+ 25% ownership of 5,760sqm land (2 of 8 units)<br>+ building purchase rate only $2,380/sqm (median rate between $3,500-$4,500/sqm)<br>+ can be strata titled into 2 self-contained units<br>+ rental upside > current blended rate $133/sqm; market rate sits between $140-160/sqm for comparable units<br>+ short WALE to capitalize on that rental upside through market review or new lease<br>+ high rental demand as convenient, central location
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How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<b>The Industrial Market</b><br><br>Osborne Park is one of Perth’s most established industrial and commercial precincts, home to a diverse range of businesses across multiple industries. The area is a key hub for warehousing, distribution, and logistics, with many transport and freight companies operating from the suburb. Automotive services, including mechanical workshops and vehicle hire businesses, are also prominent. Additionally, Osborne Park has a strong presence of construction-related businesses, such as suppliers of building materials, fabrication workshops, and trade services. The manufacturing sector includes food production, metalworks, and light industrial operations. In recent years, the area has seen growth in technology and service-based industries, with offices and showrooms integrated into industrial properties.<br><br><b>Lifestyle & Population</b><br><br>Osborne Park has traditionally been an industrial and commercial hub, but its lifestyle offerings have evolved in recent years. The suburb features a mix of residential and business activity, with Main Street serving as a focal point for dining, retail, and local services. Residents benefit from easy access to cafes, restaurants, and recreational spaces, including Herdsman Lake, a major green space ideal for outdoor activities. While primarily known for its industrial landscape, Osborne Park has also attracted families and professionals looking for a well-connected suburb close to Perth’s CBD. Attractions like BOUNCEinc, an indoor trampoline park, add to the area’s appeal, providing entertainment options for all ages.<br>
Additional Location Information File<b>U5 - Perth Party Hire</b><br><br>Perth Party Hire is a Western Australian event equipment rental company that supplies a wide range of products for weddings, corporate events, and private functions. Their inventory includes tables, chairs, catering equipment, marquees, lighting, dance floors, and more, ensuring clients have everything needed for a successful event. With over 45 years of experience, they offer professional guidance, as well as delivery, setup, and pack-down services to create seamless and well-equipped occasions.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.perthpartyhire.com.au/"><u>https://www.perthpartyhire.com.au/</u></a><br><br><b>U6 - Tenant Details TBC</b><br><br>The owner has signed up a new tenant for a 1-year term and the lease has just been executed. It’s assumed to include a 2-year option. The details will be supplied to the agent shortly.<br><br>The offer is subject to the provision of that executed lease.<br>
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All outgoings are 100% recoverable from both tenants, including management fees.<br><br>Council rates - $6,522pa<br>Water rates - $3,477pa<br>Strata rates - $6,527pa<br>Land tax - $2,310pa<br><b>Total = $18,836pa</b>
Additional Financial Information FileInitial Term:
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U5 + 6 / 7 O’Malley Street, Osborne Park - 414m2 - $133/m2 (2 identical units) 70 McDonald St, Osborne Park - 455sqm - $150/m2 3/100 Frobisher Street, Osborne Park – 370m2 - $162/m2 3/54 Collingwood Street, Osborne Park - 450m2 - $153/m2 6A Carbon Ct, Osborne Park - 648sqm - $150/m2 2/16 Hutton St, Osborne Park - 306m2 - $180/m2 42 Collingwood Street, Osborne Park - 246m2 - $224/m2
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<b>Purchase Price:</b> $1,970,000* (a formal offer needs to be presented but the agent is confident that this would be acceptable to the vendor) <br><br><b>Current Blended Net Rent:</b> $109,710pa + Outg + GST (incl mng)<br><b>Current Net Yield:</b> 5.57% (incl mng)<br><b>NLA / Land:</b> 414sqm (U5) + 414sqm (U6) = 828sqm / 5,738sqm land (25% share in the land with 2 of 8 units total)<br><b>Any Additional Areas:</b> mezzanine storage above in Unit 5 (excluded from NLA)<br><b>Purchase Rate per sqm:</b> $2,379/sqm of building<br><b>Blended Net Rent per sqm: </b>$133/sqm (excl mng)<br><b>100% Outgoings Recoverable: </b>Yes, incl mng<br><b>Outgoings (per sqm)</b>: $18,836pa (excl mng) ($23/sqm)<br><b>Age of Asset:</b> approx. 49 years<br><b>Are Seller & Tenant Related:</b> No<br><b>Re-letting Expectation</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> No<br><b>Contamination: </b>No<br><b>Asbestos Present: </b>Yes, roof od U5<br><br><b>Asset Composition: </b><br>- 2 units in complex of 8 (25%)<br>- total land size 5,738sqm <br>- Bricks construction<br>- 4.5 - 6.3m Truss height<br>- Total of 828sqm of NLA<br>- Subdivided into two separate units<br>- Two 414sqm side by side warehouse (Unit 5&6)<br>- Male and female toilets in each unit<br>- 4.5m (h) roller doors to both units<br>- 3 phase power to both<br>- Asbestos roof to U5 and 60sqm* internal brick office with mezzanine storage above in Unit 5<br>- Small front office and change rooms, painted walls and flooring in Unit 6<br><br><b>Infrastructure Level: </b>Tier 1<br><br><b>Tenant Highlights:</b><br>- Perth Party Hire (U5) + Car Rental & Wholesale (U6)<br>- Blended net rent $109,710pa + Outg + GST<br>- Net Yield 5.57% (incl mng)<br>- Annual increases N/A as 1-year leases for both<br>- Lease expiries: Jan-2026 + no option (U5) + April-2026 + no option<br>- Security: <br>U5 > no bond, only personal guarantee<br>U6 > 2 months rent + VO's + Personal Guarantee<br><br><b>Agent Questions:</b><br><br><b>How old is the building?</b> 1976 approx<br><b>Who is the new tenant for U6? </b>This has been leased through the owner, agent awaiting a copy of the lease to obtain tenant and option details<br><b>Why is the owner selling?</b> Retirement<br><b>Is the tenant related to the owner in any way?</b> No<br><b>Are mng and taxes recoverable?</b> Yes, incl mng fee<br><b>Does the property need any maintenance work?</b> Not aware, condition as you would expect for a building of that age<br><b>Is the floor area 100% council approved?</b> mezzanine above brick office not approved for storage use (not included in NLA)
