 Asset Class: | Industrial |
 Price: | $ 2735000 |
 Net Yield: | 5.82 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Exceptional Industrial Freehold with 10-15% Rental Upside & Low Building Rate at $2,318/sqm</b><br><br>This unique investment opportunity has a lot of upside to it. Currently leased at $135/sqm, there’s market evidence of comparable properties achieving $150-160/sqm in today’s market. In addition the purchase rate of building sits at only $2,318/sqm which is low for concrete tilt-up construction. Similar quality properties are being sold between $2,500-$3,000/sqm and above.<br><br>Constructed in 2013, there’s significant depreciation benefit on the building, further boosting the yield. The current tenant has been occupying the premises since July 2020. The rental shortfall can be utilized on when the lease expires in July 2027.<br><br><b>What We Like About This Asset</b><br><br>- Freehold sub $3M in a sought-after, densely developed, land-locked industrial precinct<br>- Replacement value of building approx. $2.3M + land value at $1.55M ($950/sqm) = $3.8M total value<br>- Clear warehouse height 6.8m > potential to add mezzanine to increase value & returns<br>- Rental upside between 10-15% based on direct comparable<br>- Building purchase rate only $2,318/sqm (comparable concrete tilt-up between $2,500-3,000/sqm)<br>- Low vacancy rates<br>- Built in 2013 > depreciation benefits evident<br>- Strong, reliable tenant<br>
How old is the asset?
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<b>The Industrial Market</b><br><br>Canning Vale is a diverse industrial hub featuring businesses in logistics, warehousing, manufacturing, and wholesale trade. The area is home to companies specializing in food processing, machinery and equipment manufacturing, and automotive services. A significant portion of the market is occupied by distribution centers and freight companies, leveraging the suburb’s strategic location near key transport routes. There is also a strong presence of niche industries such as technology services, construction suppliers, and renewable energy solutions. These businesses benefit from Canning Vale's well-developed infrastructure and accessibility to Perth's broader metropolitan region.<br><br>Canning Vale’s industrial market exhibits medium to high development density. Industrial properties are primarily freehold and range from small standalone warehouses to larger industrial estates. Land parcels are efficiently utilized, with the majority of sites featuring compact layouts that maximize floor space. The Gross Lettable Area (GLA) per block is typically high, reflecting the suburb’s mature stage of industrial development. <br><br><b>Lifestyle & Population</b><br><br>Canning Vale, located about 20 kilometers south of Perth's CBD, has seen steady population growth over recent years. As of the 2021 Census, the suburb housed 34,499 residents, reflecting its appeal as a family-friendly area. Known for its cultural diversity, with a significant portion of its population born overseas, Canning Vale offers a welcoming and inclusive community. The City of Canning, which includes Canning Vale, is projected to grow by approximately 22.23% between 2021 and 2046, suggesting an ongoing demand for housing and services in the area. This steady growth aligns with the suburb's reputation as a desirable place to live, work, and raise a family.<br><br>Lifestyle in Canning Vale is shaped by its modern amenities and community-focused environment. The suburb is home to a variety of schools, parks, and recreational facilities, catering to families and outdoor enthusiasts. Residents enjoy convenient access to shopping centers, gyms, and public transport, making daily life both efficient and enjoyable. The area’s clean, green surroundings and safe environment contribute to its high quality of life. With strong connectivity to Perth and a well-rounded infrastructure, Canning Vale continues to attract a mix of young families and established households, ensuring its vibrant and dynamic community remains a key feature of the suburb.<br>
Additional Location Information File<b>Viking Industrial</b><br><br>Viking Industrial - Perth, located in Canning Vale WA, is part of Australia's largest independent fixed-speed diesel specialist. We offer bespoke diesel generators, mobile LED lighting towers, air compressors, and fuel storage solutions. Our comprehensive services span engineering, mechanical installation, and electrical work from LV to HV. With five national branches and 150+ Volvo Penta dealers, we service even the most remote locations. We excel in fuel efficiency, standby applications, and 24/7 power solutions. From sourcing to commissioning, we provide seamless, turn-key solutions for all fixed-speed diesel needs.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://vikingindustrial.com.au/"><u>https://vikingindustrial.com.au/</u></a><br><br>
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Under the leases all outgoings are 100% recoverable, including management fees and land tax.
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Rental Comparable 74 Mordaunt Circuit, Canning Vale – 1,180m2 - $135/m2 20 Meares Way, Canning Vale – 1,119m2 - $147/m2 49 Catalano Circuit, Canning Vale – 1,199m2 - $154/m2 47 Tacoma Circuit, Canning Vale – 1,412m2 - $142/m2 10 Production Road, Canning Vake – 1,740m2 - $161/m2 Sale Comparable 74 Mordaunt Circuit, Canning Vale – 1,180m2 - $2,318/sqm 14Mordaunt Circuit, Canning Vale – 660m2 - $2,958/sqm 2 Craft Street, Canning Vale – 1,501m2 - $3,098/sqm Vacant Land Sales 16 Enterprice Ct, Canning Vale – 1,400sqm - $814/sqm 4 Production Rd, Canning Vale – 3,157sqm - $1,031/sqm
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<b>Purchase Price:</b> $2,735,000 <br><br><b>Current Net Rent:</b> $159,300 + Outg + GST (incl mng)<br><b>Current Net Yield</b>: 5.82% (incl mng)<br><b>NLA / Land:</b> 1,180sqm / 1,634sqm (freehold)<br><b>Additional Areas</b>: 143sqm fenced rear yard & approx. 500sqm frontyard with 11 car bays<br><b>Purchase Rate per building sqm</b>: $2,318/sqm<br><b>Net Rent per sqm:</b> $135/sqm<br><b>100% Outgoings Recoverable:</b> Yes, incl mng<br><b>Outgoings (per sqm):</b> $40,144pa ($34/sqm; incl mng)<br><b>Age of Asset</b>: 2013 approx<br><b>Any Incentives in the Lease:</b> None<br><b>Are Seller & Tenant Related:</b> No<br><b>Vacancy Status:</b> Tenanted – expect re-letting time of around 3-4 months in 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>• 1,180sqm of NLA / 1,634sqm freehold land<br>• 768sqm warehouse<br>• 412sqm 2 level office/showroom (air-conditioned)<br>• 11 parking bays<br>• Concrete Tilt-Up construction<br>• Ceiling steel truss > 7m clear height<br>• Multiple roller-doors 4.5m high x 4.5m wide;<br>• Open-plan and partitioned offices (or showroom) with natural light<br>• Additional first-floor production room<br>• Reticulated 3-phase power and power-monitoring system (watch your power-use in real-time!)<br>• Upgraded 250Amps power supply<br>• Energy-efficient induction and LED lighting throughout the warehouse and offices; and,<br>* Secure, paved rear service yard accessed by two roller-door<br><br><b>Infrastructure Level:</b> Tier 1<br><br><b>Key Highlights:</b><br>• Freehold<br>• Total of 1,180sqm of lettable building area<br>• 412sqm office/showroom + 768sqm concrete tilt-up warehouse<br>• Built in 2013 > depreciation benefits evident<br>• Net Rent $159,300 + Outg + GST (incl mng) ($135/sqm)<br>• Lease expiry 14-July-2027 + 2x 1-year<br>• Annual increase at 2.5%, review at option (2027 & 2028)<br>• 100% of outgoings paid by tenant (incl mng and taxes)<br>• Tenant – Viking Industrial (Largest Fixed-Speed Diesel Specialist) > website<br>• Located 14km South West of the Perth Airport <br>• Located 13.66km South of the Perth CBD<br><br><b>Agent Questions:</b><br><br><b>How old is the building?</b> 2013 approx, but would need double checking<br><b>Why is the owner selling?</b> The owner wants to buy a much bigger building for his own business to occupy<br><b>Is the tenant related to the owner in any way?</b> No<br><b>Are mng and taxes recoverable?</b> All costs recoverable, including management fee<br><b>Does the property need any maintenance work?</b> We are not aware that the property needs any maintenance work – haven’t been any issues to date.<br><b>Is the floor area 100% council approved?</b> Unsure if 100% of floor area has been council approved actually. I know we have electrical schematic but I am not sure if those additions were council approved or not
