Adams Drive asset biggest currently available in tightly-held precinct.
A significant industrial complex in the sought-after Welshpool precinct is expected to fetch a sale price of around $15 million after being sent to market through Colliers International.
Located on Adams Drive, the complex – featuring a 1,500sq m two-storey office building and 14,000sq m of high-bay workshops on a 3.48 hectare site – is the biggest asset currently being offered for sale in Welshpool, and one of the biggest to come to market in the tightly-held area over the past four years.
The vendor of the property, which is being offered with vacant possession, is a global heavy engineering and manufacturing company.
The asset is being marketed by Colliers International’s Wayne Chorley and Andrew Fife.
Mr Fife said the opportunity was expected to prove a strong draw for buyers, with the property’s central Welshpool location and a continuing shortage of large landholdings in established industrial precincts set to stir competition.
“Welshpool is very tightly held as it is the premier industrial location in Perth, and land parcels of this size come to the market only very rarely. There is currently no developable land available in the area,” he said.
“While this property will hold significant appeal for owner-occupiers, developers with dwindling land banks will also be attracted to this large landholding set amongst a raft of quality tenants including Westrac and RCR Tomlinson.”
In addition to the office and workshop improvements, the property features multiple gantry cranes ranging from five to 20 tonnes, a laydown area of 635sq m and a heavy-duty power supply.
With a 300 metre frontage to Adams Drive, it also offers efficient access to major arterial roads including Leach Highway, Orrong Road and Tonkin Highway.
Mr Fife said buyer activity and interest in the industrial sector was high, fuelled by record low interest rates and favourable lending conditions.
Coupled with the record activity in WA’s residential construction sector, which was creating demand for industrial space across the board, they had created a strong sales market.
“The calibre of this property, together with its Welshpool address and the shortage of large-scale opportunities in the area, will mean it is very well received by the market,” said Mr Fife.
“It would suit an industrial operator requiring facilities ready to go, and equally nature of the improvements and the location would make it eminently marketable to quality tenants.
“Given that recent figures have shown that WA industrial is the best-performing asset class in terms of total return – beating retail and office – we are anticipating strong enquiry from both owner-occupiers and investors.”
The property at 78-94 Adams Drive, Welshpool, is for sale by Offers Invited closing November 21 2014.