Geoff Fraser Director at Transact Capital has recently negotiated the sale of 15 Beach Street Kwinana Beach at $16.2 million to REDHILL PARTNERS.
The sale included a leaseback for ten (10) years. Mr Fraser said this was an outstanding outcome for both Redhill Partners and our client the Vendor.
The property located just off Paterson Road in the heart of Kwinana Beach industrial estate has 14,450 sqm of office/amenities and fabrication workshops and sits on 31,258 sqm of land.
“Kwinana Beach is going through a resurgence of new builds and occupiers after several years of being very dormant”. Mr Fraser said. “Kwinana was a forgotten area 2 to 3 years ago with lots of vacancies and closed businesses” he added.
In the future, Kwinana will be taking on a very different appearance in the coming years with new developments at The Rockingham Strategic Industrial Area (SIA) next door to the south. SIA provides access to land in the State’s premier industrial area, the Western Trade Coast and forms part of the Rockingham Industry Zone.
Mr Fraser said “Redhill Partners have been looking to acquire large land holdings with passive holding income for some time and are excited to work with the tenant on this important acquisition.”
Redhill Partners said “They were pleased to acquire a large land holding in Kwinana, considering the private and public growth in the area combined with the prospect of the port relocation from Fremantle which we did not factor into our underwriting. The 10-year lease structure provides CPI plus 1.5% rent reviews, which provides investors with inflation protected returns which was one of the compelling reasons the investment opportunity was 150% oversubscribed in the first week of opening”
Major infrastructure developments have been identified in the next 5 – 10 years in this location including Chevrons Renewable Energy Group’s facility located in the Rockingham Strategic Industrial Area (SIA).
To find out more about this sale or to discuss other opportunities please contact Geoff Fraser.
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