 Asset Class: | Show Room |
 Price: | $ 4600000 |
 Net Yield: | 6.20 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<p style="margin-inline-start:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Industrial Showroom Investment with attractive 6.2% Net Yield and Rental Upside (10-20%)</b></span></p><br><p style="padding-left:0pt;margin-inline-start:0pt;">This is a great showroom investment opportunity located in Joondalup (Edgewater). The premises offer double-sided entrances and convenient customer parking, spanning a total lettable area of 1,415 sqm, which includes a 201 sqm council-approved mezzanine.</p><br><p style="padding-left:0pt;margin-inline-start:0pt;">The property is leased to Kingdom Furniture, a leading furniture retailer in Western Australia, with a lease commencing in November 2024. The lease generates a net rental income of $285,384 per annum, plus outgoings and GST (including management fees), providing a strong net yield of 6.2%. The lease is set to run until November 2028, with a 5-year option extending to 2033, ensuring a stable income stream. The lease includes annual rent increases of 3%, as well as a market review at the option period. Additionally, the tenant is responsible for 100% of outgoings, including management fees, which further enhances net returns.</p><br><p style="padding-left:0pt;margin-inline-start:0pt;">The sale has been ordered due to the seller’s recent diagnosis of a terminal illness.</p><br><br><p style="padding-left:5.4pt;margin-inline-start:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>What We Like About This Asset</b></span></p><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">Double sided access and parking give flexibility to split into 2-4 units internally</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> </span><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;"> Lease rate at $202/sqm (incl the approved mezzanine)</span></p></li><li style="list-style-image:none;color:rgba(0, 0, 0, 1);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);font-weight:normal;font-style:normal;"> Current lease rate at $235/sqm excludes mezzanine > market evidence from $250/sqm+</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">low outgoings at $63/sqm (excl mng)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">Surrounded by national retailers (Harvey Norman, Retra Vision, Nick Scali, Spotlight, Bunnings etc)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">Tenant with strong presence online and on social media channels</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">Attractive starting net yield at 6.2% in high-demand asset class</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">100% of outgoings paid by the tenant, incl mng</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">Low vacancy rates</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;padding-left:5.4pt;margin-inline-start:0pt;font-weight:normal;font-style:normal;">Built in 2003 > depreciation benefits evident</span></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?
<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>2nd Largest CBD in WA</b></span><br><br><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">Joondalup is Western Australia's second-largest central business district, developed as part of a plan to decentralize commercial activities from Perth. It has received significant government and private sector investments across education, healthcare, retail, and infrastructure.</span></p><br><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">Edith Cowan University relocated its headquarters to Joondalup in a $40 million expansion, strengthening its role as an educational hub. The Joondalup Health Campus, the largest in Perth's northern suburbs, offers over 700 beds and comprehensive medical services. Retail growth is anchored by Lakeside Joondalup Shopping City, Western Australia’s second-largest shopping center, with Vicinity Centres acquiring a 50% stake for $420 million in 2024.</span></p><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Lifestyle & Population</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Joondalup offers a high-quality lifestyle with excellent schools, healthcare, transport, and recreational facilities. Joondalup’s population is projected to exceed 500,000 in the next decade due to its excellent infrastructure and lifestyle appeal. Families are drawn to its top-rated schools, including Lake Joondalup Baptist College and Prendiville Catholic College, while Edith Cowan University adds to its reputation as an educational hub. </span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">The suburb also boasts beautiful parks like Neil Hawkins Park and Yellagonga Regional Park, providing walking trails, picnic areas, and wildlife experiences. Nearby Mullaloo Beach offers pristine coastal escapes for families and outdoor enthusiasts. </span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Joondalup is highly accessible via the Joondalup Train Line, with a 25-minute commute to Perth’s CBD. With ongoing infrastructure development, a strong economy, and a community-focused environment, Joondalup continues to grow as an attractive and convenient location for families and professionals seeking a balanced lifestyle.</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Development Potential</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">The </span><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://www.wa.gov.au/system/files/2021-11/SPL-SPN2106-Joondalup-Activity-Centre-Plan.pdf"><u>Joondalup Activity Centre Plan</u></a><span style="color:rgb(0, 0, 0);background-color:transparent;"> (JACP) guides development in Joondalup, ensuring a vibrant and mixed-use urban environment. The subject property is located in the Joondalup West Precinct, where developments must have a minimum height of 13.5 meters and can reach a maximum of 45 meters (approximately four to twelve stories).</span>
Additional Location Information File<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Kingdom Furniture</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Kingdom Furniture is a Western Australian-based retailer specializing in high-quality furniture crafted from premium materials at affordable prices. Their product range encompasses bedroom, living room, and dining room furniture, with items such as the Acacia White Bed Frame and the Amiata Genuine Leather Sofa Set. </span><br><br><a style="color:rgb(17, 85, 204);display:inline;background-color:transparent;" target="_blank" href="https://kingdomfurnitureptyltd.myshopify.com/"><u>https://kingdomfurnitureptyltd.myshopify.com/</u></a><br>
Initial Term:
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Security Info:
<p style="margin-inline-start:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">Outgoings are 100% recoverable, including management fees and land tax.</span></p>
Additional Financial Information FileInitial Term:
Security:
Security Info:
Rental Comparable 2/4 The Gateway, Edgewater - 1,214m2 - $235/m2 (excl mezz) 1/19-21 Honeybush Drive, Joondalup - 1,100.6m2 - $269/m2 2/19-21 Honewbush Drive, Joondalup - 559.8m2 - $277/m2 6/320 Joondalup Drive, Joondalup - 359m2 - $295/m2 17 Injune Way, Joondalup - 1,062m2 - $250/m2 Sales Comparable 2/4 The Gateway, Edgewater - 1,415.4m2 - $3,250/m2 (incl 201m2 mezz) 3 Lago Place, Joondalup - 797m2 - $4,279/m2 (inferior) 19 Honeybush Drive, Joondalup - 1,960m2 - $4,387/m2 (similar) 17 Injune Way, Joondalup - 1,062m2 - $3,752/m2 (similar) 5/24 Mercer Lane, Joondalup - 321m2 - $3,614/m2 (inferior) 15 Sundew Rise, Joondalup - 1,730m2 - $4,335/m2 (similar)
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<p style="margin-inline-start:0pt;"><b>Purchase Price:</b> $4,600,000 (negotiated)</p><br><p style="margin-inline-start:0pt;"><b>Net Rent:</b> $285,384pa + Outg + GST (incl mng) </p><p style="margin-inline-start:0pt;"><b>Market Status:</b> Exclusive Off-Market</p><p style="margin-inline-start:0pt;"><b>Exclusive Car Bays:</b> Shared Parking</p><p style="margin-inline-start:0pt;"><b>Current Net Yield:</b> 6.20% (incl mng)</p><p style="margin-inline-start:0pt;"><b>NLA / Land:</b> 1,415.4sqm total (1,214.4 + 201sqm approved mezz)/ approx 10,400sqm</p><p style="margin-inline-start:0pt;"><b>Purchase Rate per sqm: </b>$3,250/sqm</p><p style="margin-inline-start:0pt;"><b>Net Rent per sqm:</b> $2350/sqm (incl mng)</p><p style="margin-inline-start:0pt;"><b>100% Outgoings Recoverable:</b> Yes</p><p style="margin-inline-start:0pt;"><b>Outgoings (per sqm):</b> $88,680pa (excl mng) ($63/sqm)</p><p style="margin-inline-start:0pt;"><b>Age of Asset:</b> approx. 22 years</p><p style="margin-inline-start:0pt;"><b>Any Incentives in the Lease: </b>yes, there is a rent-free which is due to end on 30 June (any shortfall post settlement will be paid out)</p><p style="margin-inline-start:0pt;"><b>Are Seller & Tenant Related:</b> No</p><p style="margin-inline-start:0pt;"><b>Re-letting Period:</b> 2-4 months in the current market<span style="color:rgb(0, 0, 0);">; current tenant took over lease straight from previous tenant (no vacancy)</span></p><p style="margin-inline-start:0pt;"><b>Flood Zone:</b> No</p><p style="margin-inline-start:0pt;"><b>Bushfire Zone:</b> Yes, overlap from underdeveloped areas nearby. Checked with insurance and this should have no direct impact on policy.</p><p style="margin-inline-start:0pt;"><b>Contamination:</b> No</p><br><p style="margin-inline-start:0pt;"><b>Asset Composition: </b></p><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Strata of 3 on title (TBC - CoT not yet received)</span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Concrete Tilt-Up construction</span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">1,214.4sqm Ground floor showroom + 201sqm approved mezzanine</span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">both sided entrance and parking</span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">One tenant</span></p></li></ul><br><p style="margin-inline-start:0pt;"><b>Infrastructure Level: Tier 1</b></p><br><p style="margin-inline-start:0pt;"><b>Tenant Highlights:</b></p><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Current Net Rent $285,384pa + Outg + GST (incl mng) </span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Lease Expiry Nov-2028 + 5-years (2033)</span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Annual increase at 3%, market review at option</span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">100% of outgoings paid by tenant (incl mng)</span></p></li><li style="list-style-image:none;margin-inline-start:0pt;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenant - Kingdom Furniture</span></p></li></ul><br><p style="margin-inline-start:0pt;"><b>Agent Questions:</b></p><br><p style="margin-inline-start:0pt;"><b>We assume this is not a retail lease as mng fee & land tax recoverable?</b> <span style="color:rgb(0, 0, 0);">Correct, it is not a retail lease; all outs are recoverable as the area is over 1,000 sqm</span></p><p style="margin-inline-start:0pt;"><span style="color:rgb(51, 51, 51);"><b>Wo was previous tenant and how long did it take to re-let?</b></span><span style="color:rgb(51, 51, 51);"> Bedshed was previous tenant, </span><span style="color:rgb(0, 0, 0);">current lease was agreed upon prior to Bedshed vacating; the only downtime was for fit-out.</span></p><p style="margin-inline-start:0pt;"><b>Is there a partnership between Innovative & Kingdom Furniture?</b> <span style="color:rgb(0, 0, 0);">It is the same tenant and same operator with just 2 brands; within the store, there is no division</span></p><p style="margin-inline-start:0pt;"><span style="color:rgb(51, 51, 51);"><b>Why is the owner selling?</b></span><span style="color:rgb(51, 51, 51);"> The owner (our client) has recently been diagnosed with dementia.</span></p><p style="margin-inline-start:0pt;"><b>Is the tenant related to the owner in any way?</b> No relation, arm’s length</p><p style="margin-inline-start:0pt;"><b>Has the tenant been paying rent on time?</b> The tenant has been in rent-free paying outs only but has been paying the outs on time.</p><p style="margin-inline-start:0pt;"><b>Is there a security deposit/ bank guarantee and personal guarantee (if you can provide lease I can check)?</b> 2 months Gross Rent BG in place</p><p style="margin-inline-start:0pt;"><b>Are you aware of any significant defects that may come up in the building inspection? </b>No defects that we are aware of</p><p style="margin-inline-start:0pt;"><b>Is the floor area 100% council approved, particularly referring to the mezzanine?</b> Yes, council approval has been provided</p><br><p style="margin-inline-start:0pt;"><span style="color:rgb(51, 51, 51);"><b>Offer Conditions:</b></span></p><p style="margin-inline-start:0pt;">1) Deposit: $75,000 initial deposit, payable within 3 business days of execution of Contract. Increasing to a 5% deposit (total $230,000) payable within 3 business days upon satisfaction/waiver of DD.</p><br><p style="margin-inline-start:0pt;">2) The offer is subject to the seller paying out the shortfall of rent between settlement and the last day of the rent-free period, if any, in form of a cash payout or price reduction, whichever the buyer prefers.</p>
