National syndicator Harmony Property Investments has purchased a Canning Vale industrial building from Westbridge Funds Management for $12.3 million.
The property at 50 Baile Road comprises a 5,600 square metre distribution facility and office, on a 15,289sqm lot.
Westbridge bought the asset for $4.8 million in June 2005 and placed it within its Baile Road syndicate.
The property delivered a 14.6 per cent initial rate of return for investors, translating to a 517 per cent total return.
Harmony Property Investments is a subsidiary of MRS Property, which has offices in Adelaide, Melbourne and Brisbane.
The company has office and industrial properties across Australia.
Westbridge announced the deal earlier this week, which it says demonstrates the continued demand for industrial assets.
“The sale of 50 Baile Road follows Westbridge’s recent divestment of 3 and 5 Marchesi Street in Kewdale – one of the three assets held in the fund manager’s shorter-term Fund, the Westbridge Industrial Total Return Fund,” Westbridge Funds Management chair Damian Collins said.
“Completed on 10 June, the asset was sold to an owner-occupier buyer for $10.8 million, delivering an uplift of 33% on the asset’s purchase price just 16 months prior.”
Cushman & Wakefield head of industrial ad logistics WA Nick Goodridge brokered the deal.
He said over the past 12 months, prime industrial rents in Perth have increased by 18.1 per cent on average, about five times above the long-term average of 3.6% per annum
Since mid-2021, prime rents have increased by almost 70 per cent in Perth.
He added that interest in the Perth market remained high with institutional, syndicator, and high-net-worth buyer pools all actively pursuing opportunities.
“With strong forecast rental growth still in 2024 and 2025 and supply constraints across Perth’s core markets, it’s no surprise that WA remains on the radar from all buyer pools looking to allocate capital into the WA logistics and industrial sector,” he said.
“We don’t expect this appetite to subside, particularly for assets offering similar value metrics to Baile Road.”
