This is an industrial/commercial property of almost 9,000 sqm located in the heart of Belmont. This area continues to improve as a preferred location for light industrial businesses as it is well located close to the city of Perth and the airport and is well serviced by Great Eastern Highway (currently being upgraded) and the Graham Farmer Freeway. The property consists of a 2,330 sqm warehouse, two office buildings totaling 2,465 sqm and parking for 132 cars.
Burgess Rawson have valued the property for $7.25 million whereas the syndicate paid $5.8 million.
Since contracting to purchase the property we have renegotiated with the sitting tenant at a higher rental rate per sqm and extended the term to 8 years. In addition we have secured an additional tenant for a 5 year period. These new agreements have increased the property's income by 26%. Syndicate members may now expect to receive an average income return of approximately 8.7%pa compared to the rate of 7.8%pa detailed in the Information Memorandum. This property is fully funded and consists of 55% debt, non-recourse to the syndicate members.