A commercial site in a prime location within the City of Fremantle has sold following a campaign that generated strong buyer demand.
The 11,763sq m property at 23 Peel Road in O’Connor, 20 kilometres south of the Perth CBD and only five kilometres from the Fremantle Port, has over 100 metres of frontage to the busy Stock Road.
It consists of a 5,463sq m building with both showroom and warehouse space, occupied by long-standing tenants including Carpet Court, West Coast HiFi and Intersport.
However it is ripe for future redevelopment, with multiple uses permitted within the planning scheme of its ‘Commercial’ zoning.
The property was purchased by a local private investor for $10.6m following an Offers to Purchase campaign run by Knight Frank agents Tony Delich and Cory Dell’Olio in conjunction with Ross Skelton of RN Corporate on behalf of the vendor, Stock Road Land Pty Ltd.
Mr Dell’Olio said significant buyer interest was fielded during the campaign.
“We had more than 70 enquiries resulting in five offers, which is evidence of the demand for high-exposure commercially-zoned property within the southern corridor of Perth,” he said.
“The location was one of the factors that drew buyers in, with the asset being a well-known property in a prominent corner location with frontage to Peel and Stock Road within the accessible O’Connor commercial and industrial precinct.
“While interest came from both owner occupiers and investors, the ultimate buyer was an investor who intends to hold the site and benefit from the solid holding income.”
Mr Delich said the property had potential for future upside via a complete redevelopment, making smaller modern improvements or by undertaking a leasing campaign to bring the asset to full occupancy.
“The property is 86% leased to multiple tenants, so there is the potential for income growth,” he said.
“The site also offers many options for redevelopment due to its zoning including a medical centre, office space or a car, boat or caravan yard, with bulky goods showroom a discretionary use.
“In the current market buyers are looking for sites with the ability to add value over time, however this property will also experience growth as the commercial property market recovers due to its sought-after and well-connected location.”
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