Home > Commercial Property Acquisitions > Belmont, WA
Belmont,
Western Australia
Commercial Case Study
Strategic diversification by acquiring a prime Industrial asset
A long-term client with a strong residential portfolio was seeking to diversify into commercial property. The objective was to secure a high-quality industrial asset with significant rental growth potential and a prime location.
Opportunity:
This opportunity was sourced on the market through an expressions of interest campaign. Performance Property conducted thorough initial due diligence, allowing our client to put forward a strong unconditional offer. The property in Belmont, WA, featured a concrete tilt panel, high clearance, clear span warehouse, and a fully fitted office, strategically located only 5 km from the city centre and 3 km from Perth Airport.
Outcome:
Performance Property identified significant value as the rent was approximately 20% below current market rates, with potential for rental growth given the prime location and significant discount to replacement cost. The existing tenant had been in the property for over 18 years and invested significantly in the fit out, including a full ducted A/C system throughout the warehouse. This long-term tenancy and investment in the property suggested a high likelihood of the tenant renewing their option at expiry, increasing the yield from 5.7% to 6.81%.
Acquisition Overview
Belmont, Western Australia, 6104
Type: Industrial
Land: 1939 m2
Building Area: 1385 m2
- Concrete tilt panel, high clearance, clear span warehouse
- Strategically located in a quality industrial catchment
- Centrally located only 5 km from City Centre and 3 km from Perth Airport
- Onsite private car parks
- Fully fitted office
Lunchroom and end of trip facilities
Purchase Price: $3,050,000
Net Passing Yield: 5.70%
Market Yield: 6.81%
$/m2 Building Area: $2202/m2
$/m2 Land Area: $1573/m2
Lease Term: 2 Year lease term (18 Months remaining)
Net Income PA: $173,613
Net Income $/m2: $125/m2
Market Income PA: $207,795
Market Income $/m2: $150/m2
Tenancies: 100% Leased to one tenant
The Performance Advantage
For the client, this acquisition provided a strategic diversification into the commercial property market, leveraging Performance Property’s expertise in identifying undervalued assets with significant growth potential. The thorough due diligence and strategic approach taken by our team ensured a smooth acquisition process, securing a high-quality asset with substantial upside potential.
This case study exemplifies how Performance Property not only focuses on financial metrics but also prioritises building lasting relationships and delivering tailored solutions that align with clients’ personal and financial goals.