APIL Group has sold its multi-tenanted industrial estate in Welshpool for $23.3 million, having confirmed its purchase of a neighbourhood centre last week.
APIL Group has sold its multi-tenanted industrial estate in Welshpool for $23.3 million, having confirmed its purchase of a neighbourhood centre last week.
The Welshpool industrial estate is located at 59-87 Pilbara Street and was established in the 1970s.
The 19,090 square metre estate sits on a 3.1-hectare site, on the corner of Orrong Road and Pilbara Street.
Major tenants include GPC, Forest One, All Pet, DIAB Engineering, and Scania, with a weighted average lease expiry of 2.43 years.
The off-market transaction was brokered by national real estate firm Savills, sold on a passing yield of 6.75 per cent.
Savills director of industrial and logistics Matthew Hopkins said the buyer – Arrow Capital Partners – was drawn to the estate’s tenant mix and prime location.
Arrow Capital Partners is a private international real estate company that targets investment opportunities in the Asia-Pacific and European markets, backed by AMB Capital Partners.
AMB is the investment business of the Bennett family, descendants of prominent mining businessman Peter Wright, who was the former business partner of Lang Hancock.
Mr Hopkins said given record low vacancy levels and strong tenant demand across the industrial property market, the Welshpool estate was well positioned for future growth, with Arrow Capital Partners planning to implement repositioning works.
“Being set in the absolute core of Perth’s primary industrial precinct, the estate is ideally positioned to capitalise on the current rental growth being seen across Perth’s industrial market and low vacancy rates,” he said.
“Opportunities to secure tenanted estates in Perth’s core industrial precincts are rare.
“This property offers repositioning opportunities and an established tenant base to build on.”
The deal follows APIL Group’s move last week to splash $20 million on Coolbellup Village Shopping Centre, located south of Perth within the City of Cockburn.
The 3,768sqm centre is anchored by a Woolworths and the sale achieved a yield of 5.5 per cent, which JLL said was believed to be the lowest yield ever realised for a neighbourhood centre in Western Australia.
