Bannister Road Commercial

Industrial assets continue to entice

Qube Property Group has bought a fully leased industrial asset in Canning Vale, pictured below, from Stratco Properties.

The $12 million showroom and warehouse is on a 1.4 hectare corner site with dual street frontages to Bannister and Vulcan roads.

The property is fully leased to three parties including the vendor and Stratco, which anchors the complex with a five-year lease from this year.

The other tenants — boat dealer Aquasports Marine, and specialist tool retailer Industrial Power Tool Services — are on five-year leases with fixed 3 per cent annual increases.

Qube partner Geoff Davieson said the property had a 4.5 year WALE at the time it was bought.

“The asset also generates a year one return for our investors of 8 per cent, with a potential rental upside at lease expiry,” he said.

Mr Davieson said the group raised $6.25 million for the acquisition, with the offer closing oversubscribed in less than one business day.

“The success of this capital raise is indicative of the continued low deposit rates offered at the major banks, and evidence of the strong investor appetite for assets of this nature,” he said.

“Equity market valuations are also hovering around all-time highs, which is seeing an increasing number of investors looking for exposure to the property market, especially in the high-performing industrial sector.”

Qube is so impressed with its deal that it is now on the lookout for similar acquisitions, locally and interstate.

Selling agent Brodie Keay , of Burgess Rawson, said Canning Vale “is viewed as a blue-ribbon industrial location”.