An industrial development site in Perth’s east has sold following a sales campaign that generated strong enquiry.
The 27,920sq m site at 6 Ferguson Street in Kewdale sold for $16 million, equating to a rate of $573 per square metre.
It was purchased by a private developer following a Request for Offers campaign run by Tom Iredell and Geoff Thomson of Knight Frank
The site has 239 metres of street frontage to Kewdale Road and Ferguson Street, and has a vacant and immediately developable area of 17,627sq m.
Office and warehouse improvements providing a total lettable area of 2,021sq m are situated on the remaining 10,293ssq m, providing holding income until November 2023.
Mr Iredell said the property attracted significant buyer interest throughout the sale campaign, particularly from developers and owner occupiers.
“The property was attractive to a range of buyer types due to its clear development potential while providing holding income in the short to medium term,” he said.
“The location of this well-exposed asset was also a huge drawcard, occupying a high exposure position in the heart of Kewdale within Perth’s core eastern logistics precinct.
“Kewdale is widely regarded as Perth’s premier industrial precinct due to its proximity to major transport links, the Kewdale Freight Terminal, Perth CBD, Perth Airport and other key infrastructure.
“The area benefits from high underlying land values and is well positioned for continued gentrification and undoubted growth as demand for core land increases.”
Mr Iredell said industrial development sites were still very much sought after in the current market.
“The sale price demonstrates a record land rate for core industrial sites exceeding two hectares,” he said.
“Record low vacancy has caused industrial rents to soar over the past 12 months, driving an increase in land rates as developers and investors look to capitalise on sustained rental growth.
“Demand from owner occupiers is also helping to drive land prices higher as occupiers look for alternative occupation solutions in light of increased leasing costs.”