QUBE Property Group has picked up a fully-leased industrial asset in Perth’s Canning Vale following a capital raise of $6.25 million for the acquisition that closed oversubscribed within a single day.

The showroom warehouse is on a high profile, 1.4-hectare corner site with dual street frontages to Bannister and Vulcan Roads, and is currently fully leased to three parties including the vendor, Stratco Properties, which will anchor the property with a five-year lease from 2021.

The remainder of 183-189 Bannister Road is leased by WA-based new and used boat dealer, Aquasports Marine, and specialist tool retailer, Industrial Power Tool Services,
both of whom entered into five-year leases in 2020 with fixed 3% annual increases.

The property sold with a 4.5 year weighted average lease expiry by income and will generate a year one return of 8% for Qube investors.

Qube partner, Geoff Davieson said the property boasted a strategic location near the Roe Highway access ramp with Bannister Road exposure making it an attractive asset in one
of metropolitan Perth’s pre-eminent industrial suburbs.

“In addition to Stratco, which is one of Australia’s best known and long-established family companies dating back to the 1940s, the other tenants are all geared to the resilient
home improvement, trade services and leisure markets, each of which have performed strongly throughout the Covid impacted period.”

He said the volume of registrations from investors for the capital raise was more than three times the equity requirement.

“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.

“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.

“We’re also seeing the yield spread between WA and interstate investments narrow, which is a clear sign that Perth is certainly maturing as a solid, long term investment destination.”

Selling agent Brodie Keay, of Burgess Rawson, said the Canning Vale site presented further opportunity for consolidation and growth for the purchaser while offering the
stability of long-term tenancies by established WA-based businesses.

“The market at the moment for this class of asset is extremely competitive and Canning Vale is viewed as a blue-ribbon industrial location.”