Malaga manufacturing asset attracts strong bidding
Colliers International has sold a flexible office and warehouse site in Malaga to a local investor for $2.7 million, representing a 6.7% yield.
The property, at 329 Victoria Road, is on a 3,547sqm parcel of land, including 1,771sqm warehouse, offices and showroom space.
Located 11km north-east of Perth, the property attracted strong bidding from investors, which resulted in the low yield.
Colliers International director industrial agency Raj Singh said the competitive bidding demonstrated the ongoing demand among small to mid-sized investors for well-located, securely leased industrial sites.
“We had over 30 enquiries on this property and five serious bidders competing for the site,” Mr Singh said.
“It shows the high interest that is out there for leased properties, especially those in modern warehouse style where there is a potential for flexible or multiple uses such as manufacturing and logistics.”
The property has a five-year lease to a manufacturing company that makes motorised blinds with a five-year option, but could equally be used as a logistics depot given the configuration of buildings and access to Victoria Road.
Mr Singh said logistics sales were proving to be star performers in the industrial space, and having a flexible site allowed for purchasers to future-proof their investment.
“Transport and logistics has emerged as the area making big demands on Perth’s industrial space, underpinned by the need to ship retail goods to shopfronts or direct to consumers,” he said.
The property was jointly sold by Mr Singh and Colliers International industrial executive Jeremy Parasiliti.
