Sentinel Property Group has continued its march towards a multi-billion dollar property portfolio with the recent acquisition of an industrial facility in Western Australia.
The Brisbane-based group has purchased a 18,771 square metre warehouse and office building in Canning Vale, an industrial precinct on the southern edge of Perth.
The facility is fully leased to Timberlink Australia, a subsidiary of New Forests and was purchased from Warrington Property for $10.1 million, reflecting a net passing yield of 9.9 per cent.
The move represents Sentinel's first foray into Perth and third investment in Western Australia. Previous acquisitions include the Geraldton Homemaker Centre – bought for $27.3 million in 2015 – and the Port Hedland Boulevard Shopping Centre, purchased for $17.5 million for last year.
Sentinel managing director Warren Ebert signalled his intentions to secure more commercial assets in Western Australia.
“The WA industrial market continues to experience strong demand from domestic and international investors for investment grade industrial assets,” he said.
[Related reading: Sentinel Acquires Prime Industrial Site in Pinkenba]
Located 13km south of the Perth CBD, the property was constructed in 2007 and comprises a 5,477 square metre warehouse with a 2,296 square metre awning, along with a significant hardstand component, office building and 62 car spaces.
The move coincides with a recent sell-down of about $50 million in neighbourhood shopping centres amid speculation that Sentinel is cashing out at the peak of the market.
The group has also continued its push into regional Australia by splashing out $100 million in Darwin by purchasing the fully leased Arnhemica House in Parap for $9.5 million, Jacana House for $60.75 million in June 2017 and CasCom business park in Casuarina for $34 million in December 2016.