Atlis Property Partners has purchased a prime industrial development site in Hazelmere in Perth’s east for $31.5 million in one of the city’s largest recent single-asset industrial deals.
Vendor McMahon Burnett Transport divested the 9.01-hectare property at Lots 59 and 403 Bushmead Road through a sale and leaseback.
In addition to McMahon Burnett Transport, a part of the property comprising of two office and warehouse facilities was leased to National Pump & Energy.
Atlis plans to develop and hold a circa 13,000 sqm A-grade logistics facility on the vacant portion of the site, with completion expected in the second half of 2023.
The development will have a sustainability focus targeting a 5-Star Green Star rating.
The deal marked Atlis’ first foray into the West Australian industrial market.
Knight Frank’s Tom Iredell, in conjunction with Mal Ashton of Regents Commercial, negotiated the off-market transaction.
Iredell said the purchase by Atlis Property Partners signalled the growing institutional presence in the Perth market.
“Institutional buyers are increasingly being drawn to Perth partially due to the historically low yields on the east coast forcing interstate buyers to look west in search of higher returns,” Iredell said.
“A number of major government-backed infrastructure projects are set to enhance capital growth in key industrial precincts, contributing to the overall positive sentiment for Perth located industrial assets.”
The buyer was also drawn to the location and secure holding income, Iredell said.
“The two existing tenancies will provide the buyer with substantial holding income, while a development on the unused portion of the site is built,” he said.
“With Perth’s industrial market experiencing historically low vacancy rates and continued tenant demand, this site is well placed to capitalise on forecasted rental growth moving forward.
“It is located close to transport hubs, and nearby road upgrades will soon provide a direct link between Hazelmere and the Perth Airport precinct.”
Recent Perth industrial deals include Centuria Industrial REIT’s purchase of the 2.5-hectare brownfield site at 204-208 Bannister Road, Canning Vale for $10.1 million in June.
