The former Brickworks property at 10 Bonner Drive in Malaga WA, a major industrial infill development site, has been sold for $19.2 million through Knight Frank.
The $19 million price tag is less than expected: industry sources speculated earlier this year the site would sell for between $25 million and $30 million.
The site covers more than 11 hectares of land and is located in one of Perth’s most sought after industrial locations.
It was sold to successful local investor/developer Aigle Royal who have a number of residential, retail and commercial projects across the metropolitan area.
The property was also sold subject to a six month leaseback to Brickworks – which is in the process of relocating to its newly developed operating plant in Cardup south of Perth.
The ASX-listed Brickworks closed its Malaga plant in August last year – taking a $47 million hit in its full-year accounts because of the downturn in the WA building industry.
Knight Frank Senior Director Industrial – WA, Jarrad Grierson, said the property had presented a truly unique opportunity for developers and investors to secure a prominent infill site with the opportunity to add significant value through subdivision or redevelopment.
“The rare scale of the site coupled with the flexibility of the existing improvements and the potential for a wide range of redevelopment or occupation alternatives made this a very appealing option to a large number of potential purchasers,” Grierson said.
“Our marketing campaign attracted strong interest from a broad cross-section of local and national institutions, owner occupiers and individuals.”
Aigle Royal General Manager Property Investments, Wayne Lawrence, said his company had been looking for a large scale industrial property for some time.
“The addition of Bonner Drive to our portfolio fits into our diversification strategy and the property being one of the last big sites in Malaga represents significant potential for a number of investment scenarios,” Mr Lawrence said.
There are some good buying opportunities in the industrial market at the moment so further acquisitions in this space cannot be ruled out.”
Knight Frank’s Sam Hammond said the property was located within the established Malaga industrial/commercial precinct in Perth’s northern industrial corridor.
He said it provided easy access to Reid and the Tonkin Highways and the Mitchell Freeway and was just 12 kilometres from both the CBD and Perth airport.